We expect the Union Budget 2015 to take a small step in making life easier for the bank depositors, especially senior citizens, with respect to deduction of TDS on interest.
Today banks are not required to deduct TDS (Tax deducted at Source) on interest paid on savings accounts but if the interest paid exceeds Rs.10,000/- per annum on an FD, then the bank is obligated to deduct TDS. While it is a reasonable measure to front-end the collection of taxes, it would be a lot better if the budget tried to simplify this process. It will reduce the burden on banks and also save senior citizens living on interest income from the procedural hassles. Continue reading