Shriram Finance fixed deposits is like any other FD, So the taxes are applicable as per the income tax rule. TDS of 10% is deducted on interest exceeding Rs. 5,000 in a financial year (20% without PAN). Investors also with income below the tax slab can submit Form 15G/15H to avoid TDS deduction.
As required under the Income Tax Act, 1961, tax at applicable rate will be deducted at source from the amount of interest paid and/or credited to a depositor if the gross interest exceeds the prescribed limit during the financial year under specific customer ID. For exemption of TDS, first applicant, must submit to the company Tax declaration form (Form 15G/H/order U/s 10/Order U/s 197 – as the case may be). TDS will be deducted at twice the rate inforce if the depositor is a specified person under section 206AB of the Income Tax Act 1961.
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