Is TDS Applicable on Interest Paid to Legal Heir ?


Every legal heir whose father or mother had term deposits in Bank may ask whether  TDS is applicable on interest, because the bank informs them about impending TDS on  payments of interest on fixed deposits or term deposits which are  in the name of the person who dies suddenly or unexpectedly.The other question which arises, in mind of legal heirs is if TDS applicable on interest, whether form 15 G can be filed by them to prevent TDS on such interest payments. Earlier, on this blog a post regarding the eligibility of filing Form 15G by legal representative of the deceased was made, but it is felt that the issue should be covered in detail as one reader- Sri G. Malviya of Lucknow  has asked very relevant question in this regard.

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