Kerala Varma

TDS on Bank deposits of senior citizens Although a senior citizen myself I am pleading for my 87 year old mother-in-law who keeps some fixed deposits with a PSBank hoping four of her daughters all of them married would be able to claim the proceeds on her death. She renews them year to year. The PS Bank insists that she fill up a form every year after 1st April so that the Bank would not be required to deduct tax at source on maturity or periodically depending on the nature of the deposits. She has been banking with the PS Bank in question since her husband's premature death in 1960 and has successfully seen of four of her daughters married of and is quite content to spend her remaining days in peace and at peace with her maker. She however is unable to understand why she should not be spared from filling the forms to be submitted to the Bank for sparing her interest being taxed at source. She is not a tax payer any more. And she asks why is this Government not sparing her from peace of mind every year although she has not had to pay income tax for several years now. May be the Finance Minister could spare my mother-in-law from submitting the form to the PS Bank this year i.e.after 1-04-2010 vis-a-vis interest on her Bank deposits from being deducted tax at source on interest on these deposits.

Kerala Varma
Retired pensionerof SBI
D/B 18-09-1939