Advice sought for income tax exemption of senior citizen

[Guest]

Hi,

My mother is a senior citizen (71 years old). Her annual income [which is from various FDs in banks] just about exceeds 3 lakhs by a whisker due to which she did not submit the Form 15H. And the bank is now deducting TDS to the tune of approximately ₹ 8,000 /= every quarter, which amounts to ₹ 32,000 for the year.

I have two queries:

1. As per the income tax rule, the rate of tax for senior citizens under the ₹ 3 to 5 lakhs slab is given as 10% of the amount by which the taxable income exceeds ₹ 3,00,000/-. Now my mother's annual income exceeds the ₹ 3 lakh limit by just ₹ 12,000. Does this mean that TDS will be applied ONLY on the ₹ 12,000? Why I am asking is because in the TDS certificate [Form 16 A] that the banks are sending every quarter, the tax being deducted is on the principal amounts of the individual FDs.

2. How can my mother avail of the Section 80C to be exempt of all tax liability? For instance, I have a PPF account in my name. Can she deposit the same amount by which her income exceeds the taxable income, in this case ₹ 12,000, into my PPF account in March this year? And since the TDS has already been deducted for 2016-17, by when does she have to file a return to get a refund of the tax deducted?

Thanks!

AI Summary

Senior citizen tax exemption: ensure submission of exemption declaration, claim eligible deductions and file return to obtain TDS refund. Inquiry whether a senior citizen whose interest income from bank fixed deposits marginally exceeds the exemption limit is taxable only on the excess and why banks deduct TDS on gross interest; whether Form 15H prevents TDS; whether Section 80C relief can be claimed by depositing into another person's PPF account to reduce taxable income; and the procedure for filing an income tax return to obtain refund of TDS already deducted.