29 February 2012
Dear Sir, We know that CBDT has exempted to file the tax return if salary income is less than 5 lacs Rs with certain conditions one of the condition is that saving account interest should be limit to 10000 Rs and employer should deduct the TDS on it. Now my query is that in case of saving account interest how can employer deduct the TDS I think Bank in which we saving account have is entitled to deduct it. Please tell me and keep away my confusion .
29 February 2012
Employer is not the authorised person to deduct any TDS on Savings Account(its the Bank which is entitled). Moreover Interest of 10,000 does not qualify for any deduction of T.D.S.
Section 194A is applicable only when Interest is more than 10,000.
CAclubindia
