Anatomy: Your Time Deposit Income and Taxes: - www.deekpay.com

Paytm Payments Bank in association with partner banks offers fixed deposits to its customers. The following article contains information on what you need to know about your earnings, TDS deductions and how to get interest and tax certificates for filing your Individual Income Tax Return (ITR). Also, the article explains how to file your Form 15G/H in case your total income for the financial year is tax-free.

How can I view my total interest income for a financial year? You can request for interest proof through the Paytm app and get it delivered to your inbox in seconds. You need to declare this interest income (both paid and accrued) under 'Income from other sources' in your personal income tax return.

Are gains on time deposits taxable? Yes. Interest income from time deposits is taxable. It will be taxed at the rate applicable to your total income for the financial year. From April 2019, if the interest income on fixed deposits exceeds Rs. 40,000 in the financial year, then TDS will be deducted from your interest income at the rates of 10% (PAN-holding subscribers) and 20% (non-PAN subscribers).In the previous financial year (2018-19), interest income in excess of Rs. 10,000 will be taxed at the rate of 10% (PAN holding subscribers) and 20% (non-PAN subscribers) rates to deduct TDS.

The TDS certificate (Form 16A) provides details of the tax that has been paid to the IRS on your fixed deposit interest income. You can request the TDS certificate through the Paytm app. Moreover, you can set off this TDS against your tax liabilities while filling ITR.

How do I apply for a Certificate of Interest? Interest certificates for the current financial year will be available at the end of the year. Follow these steps to download interest certificates: Open Paytm Banking app → click on "Fixed Deposits" → click on "Manage Fixed Deposits" → click on "Get Interest Certificates via Email "Select the desired financial year and confirm. The interest certificate for the selected financial year will be sent to your registered email address within a few seconds.

How to apply for a TDS certificate?TDS certificates are issued one month after the end of each financial quarter. For example, the TDS certificate for the first quarter (1 April to 30 June) will be issued in the first week of August. This certificate is issued only to PAN holders. To request a TDS certificate, follow these steps: Open the Paytm Banking app → click on "Fixed Deposits" → click on "Manage Fixed Deposits" → click on "Obtain TDS certificate by email "Select the desired financial year and quarter and confirm. The TDS proof for the selected FY and Quarter will be sent to your registered email id within a few seconds.

How to adjust TDS while filling ITR?The TDS amount, as shown in the TDS certificate, can be credited against your total tax at the time of filing Individual Income Tax Return. If your total income (including interest income from fixed deposits) falls within the tax band of 0% (i.e. not taxable): you can claim a refund of the entire tax deducted by the bank. Note: To avoid the hassle of bank deductions and claiming a refund, please complete Form 15G/H at the beginning of the financial year.

5% tax band: you can claim a refund of 5% on the interest as the bank has deducted 10% of tax.20% or higher tax band: you will have to pay the remaining tax over 10%. For example, a user in the 30% tax band will have to pay the remaining 20% as the bank has only deducted 10%.

What if my total income (including interest on fixed deposits) for a financial year is not in the taxable band? In such cases, you can file Form 15G/H with instructions not to deduct TDS provided you fulfil the following conditions: you hold a valid PAN and are a resident of India; and the tax computed on your total income is nil, i.e., your total income is below the basic personal income tax exemption. Please refer to the age limit table below. You have at least one active fixed deposit at the time of filling Form 15G/H. The total interest income from the time deposit is less than the basic personal income tax allowance.

| Client's age | Personal Income Tax Allowance | Forms to be completed |

| ——– | —————- | ————– |

| 80 years | up to Rs 500,000 | Form 15H |

For ease of filling up Form 15G/H: Open Paytm Banking App → click on "Fixed Deposits" → click on "Manage Fixed Deposits" → submit Form 15G/H.

Do I need to complete Form 15G/H every year? Yes! Form 15G/H is valid for one financial year only. It will need to be completed again at the beginning of each fiscal year.

What if I forget to fill Form 15G/H? Fill up your Individual Income Tax Return to seek a refund of the excess TDS deducted by the bank.Also, file Form 15G/H as soon as possible to avoid tax deductions for the remaining financial year.

What if I submit Form 15G/H but I have taxable income? You must inform us immediately that your income is taxable. We will then start deducting TDS accordingly. please note that Form 15G/H is a statutory declaration submitted by you. Before submitting Form 15G/15H online, you should verify that the information provided in the form is true, accurate and complete.

Any person providing a false statement will be prosecuted under section 277 of the Income Tax Act 1961.

*Disclaimer: Please consult your tax advisor/consultant regarding tax and return completion for interest. *