I am planning to invest in RBI bonds. Can I prevent TDS at source? My fd interests and mutual fund dividends pay me around 6.5lakhs per year.

Ans: Yes, NRIs can claim refunds on the deducted TDS. For an NRI to claim a refund on the TDS deducted, he/she must compute their income and tax liability according to existing slab rates and file your IT Returns accordingly.

If there is a refund due as per the returns, it will be paid out to you after processing by the IT Department.

Ans: Yes, this is right from ITR point of view as you are accounting for it on a receipt basis.

Ans: Person can submit form 15H if total income is below the taxable limit. Super senior citizen (age 80 above), having income upto 5 lacs, is not liable to pay tax on income from interest and can submit Form 15H.

Ans: Hello Amit,

I understand your concern and it's great to see your proactive approach towards tax compliance.

As per the Income Tax Act, banks are required to deduct TDS on interest income when it exceeds Rs. 40,000 in a financial year (Rs. 50,000 for senior citizens). This is an automated process and banks follow this rule strictly.

However, if you wish to have TDS deducted even when your interest income is below Rs. 40,000, you may not be able to do so through the bank directly as their systems are designed to comply with the existing tax laws and automatically deduct TDS only when the interest income crosses the specified threshold.

That being said, you can still manage your tax liability effectively. You can calculate the tax on your interest income and pay it as Self Assessment Tax or Advance Tax, as applicable, through the Income Tax Department's e-payment facility. This way, you can ensure that your tax payment obligations are met in a timely manner.

Please consult with a tax advisor or chartered accountant for personalized advice based on your specific circumstances.

I hope this information is helpful.