I-T DEDUCTION

Iam a 67-year-old senior citizen suffering from BP and Diabetes and am undergoing treatment for stroke.

I have a Savings Bank account and FDRs in M/s Laxmi Vilas Bank, Koti Branch, Hyderabad.

Apart from this, I also have FDRs and SB A/c’s at Axis Bank, Himayatnagar. Recently, the government of India raised the ceiling of interest towards FDRs from `10,000 to `50,000 especially for senior citizens.

But both the banks while crediting my quarterly interest have deducted Income-Tax. M/s Lakshmi Vikas Bank paid `3,735 after deducting an I-T of `472 on July 12, 2018.

Also, Axis Bank, Himayatnagar Branch, on July 30, 2018, paid quarterly interest of `16,200 after deducting `1,800, which is very low as the interest has not reached the limit of `50,000. Hence, the purpose of the government of India allowing interest of `50,000 to senior citizens on FDRs does not serve any purpose.

When contacted, both banks say that the system has deduction and the Income-Tax has been calculated on the projected interest for financial year 2018-19.

This makes it useless for senior citizens to invest in banks and banks should be flexible towards senior citizens who have deposited their hard earned money.

I request the IT authorities to clarify the above facts and issue necessary instructions to all banks both nationalised and private banks.