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TDS: Senior citizens can breathe easy
November, 11th 2006

The Reserve Bank of India has told several commercial banks not to deduct interest tax payable on fixed deposits of senior citizens. Senior citizens are eligible for tax exemption on the interest earned on fixed deposits for which they have to submit Form No 15 H and 15 G to their respective banks.

The Finance Ministry is receiving complaints that several banks are deducting tax even after senior citizens submit the forms. Most of the banks to whom notices have gone are in the public sector; ICICI Bank is the only private bank.

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