Latest news with #Section87A
Time of India
05-07-2025
- Business
- Time of India
FD rate up to 7.85% for senior citizens investing for three years; Know the list of banks
Bank FD interest rate for senior citizens FD rate up to 7.85% FD rate up to 7.8% FD rate up to 7.75% for senior citizens Bank name Interest rate YES Bank 7.85% SBM Bank 7.8% Bandhan Bank 7.75% RBL Bank 7.6% IndusInd Bank 7.5% FD rate up to 7.6% for senior citizens FD rate up to 7.5% When is TDS deducted from bank FDs? New tax regime: Under the new tax regime, the basic exemption limit is Rs 4 lakh, but with the enhanced Section 87A rebate, individuals with total income up to Rs 12 lakh pay no income tax, making them eligible to submit Form 15H for FY 2025-26. Under the new tax regime, the basic exemption limit is Rs 4 lakh, but with the enhanced Section 87A rebate, individuals with total income up to Rs 12 lakh pay no income tax, making them eligible to submit Form 15H for FY 2025-26. Old tax regime: In the old tax regime, the exemption limit is Rs 3 lakh (enhanced to Rs 5 lakh for taxpayers aged 80 years or more), and the 87A rebate applies for income up to Rs 5 lakh, allowing Form 15H submission for FY 2025-26, if the total taxable income does not exceed this threshold. There are still some banks which continue to offer up to 7.85% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for three year tenure and not exceeding Rs 3 below to know the list of banks offering FD interest rate up to 7.85%. YES Bank is offering 7.85% interest rate on FD of three year Bank India is offering 7.8% interest rate on FD of three year tenure. Bandhan Bank is offering 7.75% interest rate on FD for three year tenure for senior showing bank FD rate for three year tenure for senior citizensSource: as of July 2, 2025 RBL Bank is offering 7.6% interest rate on FD for three year tenure. IndusInd Bank is offering up to 7.5% interest rate on FD for three year Deducted at Source (TDS) is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax instance, if a senior citizen's income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax a senior citizen can submit Form 15H to prevent TDS deduction if his total income after all deductions claim and Section 87A rebate is below the taxable limit like Rs 12 lakh for the new tax regime or Rs 5 lakh for the old tax the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such 15H applies based on the final tax liability after considering exemptions and rebates.
Economic Times
05-07-2025
- Business
- Economic Times
FD rate up to 7.85% for senior citizens investing for three years; Know the list of banks
ET Online Fixed Deposit(FD) rate up to 7.85% for senior citizens investing for three years; Know the list of banks There are still some banks which continue to offer up to 7.85% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for three year tenure and not exceeding Rs 3 crore. Read below to know the list of banks offering FD interest rate up to 7.85%. Bank FD interest rate for senior citizens FD rate up to 7.85% YES Bank is offering 7.85% interest rate on FD of three year tenure. FD rate up to 7.8% SBM Bank India is offering 7.8% interest rate on FD of three year tenure. FD rate up to 7.75% for senior citizens Bandhan Bank is offering 7.75% interest rate on FD for three year tenure for senior showing bank FD rate for three year tenure for senior citizens Bank name Interest rate YES Bank 7.85% SBM Bank 7.8% Bandhan Bank 7.75% RBL Bank 7.6% IndusInd Bank 7.5% Source: as of July 2, 2025 FD rate up to 7.6% for senior citizens RBL Bank is offering 7.6% interest rate on FD for three year tenure. FD rate up to 7.5% IndusInd Bank is offering up to 7.5% interest rate on FD for three year tenure. When is TDS deducted from bank FDs? Tax Deducted at Source (TDS) is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax instance, if a senior citizen's income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax a senior citizen can submit Form 15H to prevent TDS deduction if his total income after all deductions claim and Section 87A rebate is below the taxable limit like Rs 12 lakh for the new tax regime or Rs 5 lakh for the old tax regime. Despite the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such situations. Form 15H applies based on the final tax liability after considering exemptions and rebates. New tax regime: Under the new tax regime, the basic exemption limit is Rs 4 lakh, but with the enhanced Section 87A rebate, individuals with total income up to Rs 12 lakh pay no income tax, making them eligible to submit Form 15H for FY 2025-26. Under the new tax regime, the basic exemption limit is Rs 4 lakh, but with the enhanced Section 87A rebate, individuals with total income up to Rs 12 lakh pay no income tax, making them eligible to submit Form 15H for FY 2025-26. Old tax regime: In the old tax regime, the exemption limit is Rs 3 lakh (enhanced to Rs 5 lakh for taxpayers aged 80 years or more), and the 87A rebate applies for income up to Rs 5 lakh, allowing Form 15H submission for FY 2025-26, if the total taxable income does not exceed this threshold. N.R. Narayana Murthy Founder, Infosys Watch Now Harsh Mariwala Chairman & Founder, Marico Watch Now Adar Poonawalla CEO, Serum Institute of India Watch Now Ronnie Screwvala Chairperson & Co-founder, upGrad Watch Now Puneet Dalmia Managing Director, Dalmia Bharat group Watch Now Martin Schwenk Former President & CEO, Mercedes-Benz, Thailand Watch Now Nadir Godrej Managing Director, of Godrej Industries Watch Now Manu Jain Former- Global Vice President, Xiaomi Watch Now Nithin Kamath Founder, CEO, Zerodha Watch Now Anil Agarwal Executive Chairman, Vedanta Resources Watch Now Dr. Prathap C. 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Economic Times
02-07-2025
- Business
- Economic Times
Think market income below Rs 12 lakh is tax free? TaxBuddy founder warns how this common mistake could attract big tax notice
Many Indian retail investors are surprised to learn that earning under ₹12 lakh in the stock market doesn't guarantee tax exemption. Confusions arise from overlooking how different income types are taxed, such as intraday trading, F&O, STCG, and LTCG. Understanding income classification is crucial for accurate tax calculation and avoiding unexpected notices. Tired of too many ads? Remove Ads Breakdown of the investor's income ₹3 lakh in intraday losses ₹2.5 lakh from futures and options (F&O) gains ₹3.5 lakh in short-term capital gains (STCG) ₹4 lakh in long-term capital gains (LTCG) The total profit was under ₹12 lakh. However, that did not make it exempt from tax. Tired of too many ads? Remove Ads Tax confusion is common Retail investing surge meets tax surprises A growing number of retail investors in India are discovering that earning less than ₹12 lakh from stock markets does not automatically mean a tax exemption. According to Sujit Bangar, founder of investors often get caught off guard because they overlook how each type of income is taxed under different a recent example, Bangar highlighted the case of a full-time investor who earned ₹7 lakh from the market. Expecting zero tax, the investor instead received a tax notice demanding ₹74, investor's earnings included:How tax rules treat different incomesTax laws treat each income type separately:Intraday trading: Treated as speculative business income, taxed at slab rates, and losses can only be adjusted against speculative profits. Losses can be carried forward for four and Options (F&O): Classified as non-speculative business income, taxed at slab rates. Losses have broader set-off options and an eight-year carry-forward capital gains (STCG): Taxed at a flat rate of 20% under Section 111A. STCG losses can offset both STCG and capital gains (LTCG): Only ₹1.25 lakh is exempt under Section 112A. Any amount above that is taxed at 12.5%. No indexation benefits or Section 87A rebate confuse low income with low tax,' Bangar said in a detailed LinkedIn post. 'Understand how each income is classified—and taxed.'He pointed out that the investor's mistake was not the profit amount but how the gains were treated under tax law. 'What got him in trouble wasn't profit—it was classification.'Bangar's post comes at a time when millions of Indians are entering the stock market through trading apps, often without full knowledge of tax laws.'Tag someone who trades but thinks ₹12L = 'tax-free zone,'' Bangar wrote. His message underlines the importance of understanding tax rules before new and existing investors, the key takeaway is this: knowing how your income is classified matters more than how much you earn.
India Today
02-07-2025
- Business
- India Today
Investor earns Rs 7 lakh, faces Rs 74,000 tax despite Rs 12 lakh limit. Know why
A tax expert has explained how a retail investor who earned Rs 7 lakh in stock market profits ended up with a tax demand of Rs 74,375. The case highlights how misreading the nature of income can lead to unexpected tax liabilities, even when total earnings seem Bangar, founder of and a former IRS officer, shared the example on LinkedIn to warn investors against a common misconception. The investor, Rahul, believed that since his total income was below Rs 12 lakh, he would not be liable to pay tax. What he overlooked was how different types of market income are treated under the tax earnings included a Rs 3 lakh loss from intraday trading, a Rs 2.5 lakh gain from futures and options, Rs 3.5 lakh in short-term capital gains from equities, and Rs 4 lakh in long-term capital gains. After subtracting the losses, he assumed that his Rs 7 lakh net income was tax-free. However, Bangar pointed out that the tax system does not allow such aggregation. Each category of income is assessed and taxed separately, with its own rules, exemptions, and set-off trading is treated as speculative business income. It is taxed at the individual's slab rate, and any losses can be adjusted only against speculative gains. If not utilised, such losses can be carried forward for four and options are considered non-speculative business income under Section 43(5). These are also taxed at slab rates, but the losses can be set off against a wider range of incomes except salary, and carried forward for up to eight capital gains, such as those from selling equities within a year, fall under Section 111A. These gains are taxed at a flat rate of 20 percent. While losses in this category can be adjusted against both short- and long-term capital gains, they do not qualify for basic income capital gains from listed equities are covered under Section 112A. The first Rs 1.25 lakh in gains is exempt, but any amount above that is taxed at 12.5 percent. There is no indexation benefit, and losses here can only be set off against other long-term capital also clarified that the Section 87A rebate of up to Rs 12,500, available to individuals with taxable income under Rs 5 lakh, does not apply to long-term capital gains under Section real issue, according to him, was not how much Rahul earned but how that income was classified. Many investors make the mistake of treating their total earnings as one pool, ignoring the rules specific to each warning comes at a time when market participation by retail investors is surging, driven by app-based trading platforms. For many, the complexity of tax treatment remains an afterthought until the tax bill arrives.'Don't confuse low income with low tax,' Bangar wrote. 'Understand how each income is classified and taxed.'His message is clear: market profits are no guarantee of tax freedom unless investors understand the fine print.- Ends
Time of India
02-07-2025
- Business
- Time of India
Think market income below Rs 12 lakh is tax free? TaxBuddy founder warns how this common mistake could attract big tax notice
Many Indian retail investors are surprised to learn that earning under ₹12 lakh in the stock market doesn't guarantee tax exemption. Confusions arise from overlooking how different income types are taxed, such as intraday trading, F&O, STCG, and LTCG. Understanding income classification is crucial for accurate tax calculation and avoiding unexpected notices. Tired of too many ads? Remove Ads Breakdown of the investor's income ₹3 lakh in intraday losses ₹2.5 lakh from futures and options (F&O) gains ₹3.5 lakh in short-term capital gains (STCG) ₹4 lakh in long-term capital gains (LTCG) The total profit was under ₹12 lakh. However, that did not make it exempt from tax. Tired of too many ads? Remove Ads Tax confusion is common Retail investing surge meets tax surprises A growing number of retail investors in India are discovering that earning less than ₹12 lakh from stock markets does not automatically mean a tax exemption. According to Sujit Bangar, founder of investors often get caught off guard because they overlook how each type of income is taxed under different a recent example, Bangar highlighted the case of a full-time investor who earned ₹7 lakh from the market. Expecting zero tax, the investor instead received a tax notice demanding ₹74, investor's earnings included:How tax rules treat different incomesTax laws treat each income type separately:Intraday trading: Treated as speculative business income, taxed at slab rates, and losses can only be adjusted against speculative profits. Losses can be carried forward for four and Options (F&O): Classified as non-speculative business income, taxed at slab rates. Losses have broader set-off options and an eight-year carry-forward capital gains (STCG): Taxed at a flat rate of 20% under Section 111A. STCG losses can offset both STCG and capital gains (LTCG): Only ₹1.25 lakh is exempt under Section 112A. Any amount above that is taxed at 12.5%. No indexation benefits or Section 87A rebate confuse low income with low tax,' Bangar said in a detailed LinkedIn post. 'Understand how each income is classified—and taxed.'He pointed out that the investor's mistake was not the profit amount but how the gains were treated under tax law. 'What got him in trouble wasn't profit—it was classification.'Bangar's post comes at a time when millions of Indians are entering the stock market through trading apps, often without full knowledge of tax laws.'Tag someone who trades but thinks ₹12L = 'tax-free zone,'' Bangar wrote. His message underlines the importance of understanding tax rules before new and existing investors, the key takeaway is this: knowing how your income is classified matters more than how much you earn.
