For age below 60 year - TDS threshold limit on interest earned on bank/post office deposits is raised from 10000 to 40000 from April 2019 under Section 194A . Accordingly, if your interest income on bank / post office deposits exceeds Rs 40000 a year, the bank will deduct 10% tax at source. To avoid TDS on interest income submit Form 15G.
For age above 60 year - From April 2018 the TDS on bank / post office interest income limit is increased from Rs 10,000 to Rs 50,000. Accordingly, if your interest income on deposits exceeds Rs 50000 a year, the bank will deduct 10% tax at source. To avoid TDS on interest income submit Form 15H.
In this connection please note that :-
PPF Calculator - Special Feature of this Calculator You can check calculation of interest from the date of opening of your PPF account upto the end of current Financial Year. To continue to check interest press the button "Check Interest for Next Year". It will carry over closing balance as opening balance for the next Financial Year.Income Tax Exemption Limit
Section 194A of income tax act provides for deduction of tds on payment made regarding interest. TDS threshold limit on interest earned on bank/post office deposits is being raised from 10,000 to 40,000 under section 194A from April 2019. For example if bank pays Rs. 40,001 interest on fixed deposit to a customer. Since the amount is more than Rs. 40,000, bank is liable to deduct TDS @ 10% on the whole amount of interest i.e Rs. 40,001.
# This income is net of deduction available to Sr. Citizen u/s 80TTB maximum of Rs. 50000/- for interest income on Bank / Post office deposits w.e.f. FY 18-19
*Standard Deduction :- A deduction of fifty thousand rupees (Rs. 50000/-) or the amount of the salary, whichever is less available under Section 16(ia) w.e.f. 1st April 2019 for (AY 20-19). This limit was Rs. 40000/- for FY 18-19. Please enter your total estimate of salary / pension payable amount for FY 19-20 after taking into account Standard Deduction.
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