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I am a very senior citizen and my tax exemption limit is Rs 5 lakh. Taking into account my other income, I estimated my withdrawal amount from my NSS A/C as Rs 2.8 lakh without TDS deduction against Form 15H.
On October 9, 2012, I handed over my withdrawal form for Rs 2.8 lakh with Form 15H and photocopy of my PAN card to GPO, Bangalore.
I was informed that any amount over Rs 2.4 lakh will invite TDS@20 per cent.
As I needed funds urgently, I amended my request to Rs 2.4 lakh.
Please clarify if the GPO officials were right in limiting amount to Rs 2.4 lakh.
— S.N. Sarma
For resident senior citizens, there is a provision available under the Income-tax Act, 1961, to claim certain receipts without deduction of tax by giving a self declaration in Form 15H. The main condition that is mandatory to be fulfilled for the purpose of submitting Form 15H is that tax on estimated total income including the above receipts should be nil during the relevant financial year.
Therefore, if on computing the total income for a particular year, a person is liable to pay tax according to the applicable slab rates, he cannot submit Form 15H to the deductor.
Hence, if the tax on your estimated income including the above mentioned NSS (after availing the exemption limit of Rs 5 lakh) is nil, then you can withdraw the whole of the amount without deduction of tax.
Mail your queries to > taxtalk@thehindu.co.in
(The author is a practicing chartered accountant)
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