Question ID :
44629
082701
A prop firm has to pay Interest to a Super senior citizen around 499000- He does not have any other source of income Is Form 15G required to be obtained
Posted by
Mahesh Kumar
on
Mar 31, 2024
Filed Under
DIRECT TAXES
If the interest payment by the proprietorship firm to the super senior citizen is Rs. 4,99,000, it exceeds the threshold of Rs. 50,000 where TDS is applicable. In this case, TDS would normally be required to be deducted.
However, Form 15G can be submitted by the super senior citizen, declaring that their total income is below the taxable limit and hence, no TDS should be deducted on the interest income.
So, in this scenario, if the super senior citizen submits Form 15G to the proprietorship firm, declaring their eligibility, then the firm would not be required to deduct TDS on the interest payment of Rs. 4,99,000. Otherwise, TDS would need to be deducted
Posted by
CA SURABHI SACHDEVA on
Apr 02, 2024
Answer ID :
85378
Yes. Form 15H should be obtained, if interest income is more than Rs.50000/-.
Posted by
CA. chunauti dholakia on
Apr 02, 2024