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Tds u/s 194a

(Guest)

good morning sir.

i am in problem about u/s 194a , i want to know only this that tds deduct u/s 194A which interest fixed deposit or saving a\c. means i want to know that will tds deduct on fd or saving a\c if crossing tha limit 10000

plz reply

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23 Replies

ankita Goyal (Student CA Final) (113 Points)
Replied 19 May 2012

TDS u/s 194a is cumulative of both savings bank a/c and fdr. if the total int from both exceeds 10000 then tds will be deductible.

1 Like

(Guest)

thanks for reply mam can i take deduction in income tax return

TARUN ARORA (Fresher CA) (132 Points)
Replied 19 May 2012

You will eligible to claim Credit of such TDS deducted u/s 194A in your Income Tax Return. You can not be eligible to take such as Deduction.... Correct it If I m wrong.....

Mihir Doshi (B.Com, CA, CS, LLB) (2187 Points)
Replied 19 May 2012

IF your income goes beyond 10,000..Bank will deduct the TDS and give you TDS certificate by 30th May of the next year.

1 Like

(Guest)

thanks for reply sir tds deduct both a\s means saving a\c and fixed deposit a\c. and form 16a rec. 30 may by bank

(Guest)

TDS will only be deducted from intt on FDR and not from SB a/c if more than 10000 that to from one branch

1 Like

phani kumar (student) (32 Points)
Replied 19 May 2012

The answer given by Sonu is the correct one i.e., TDS u/s 194A apply only on TERM DEPOSOT RECEIPTS (FDR) but not on SB a/c interest. You can claim such TDS deducted in your income tax return for the applicable assessment year. If any further clarification it is better to refer income tax act.

DIBYENDU (SERVICE) (266 Points)
Replied 19 May 2012

IT IS WRONG THAT INTEREST ARISE FROM SAVINGS ACCOUNT IS TOTALLY TAX FREE. UPTO 1ST APRIL 2012 IT IS TOTALLY TAXABLE & AFTER 1ST APRIL 2012 IT IS TAX FREE UPTO RS. 10000.00. ON THE OTHER HAND TOTAL INTEREST PAID ( AGGREGRATE AMOUNT OF INTEREST FROM FD & SAVINGS IN ONE YEAR) BY BANK IF EXCEEDS RS. 10,000.00 THEN BANK DEDUCT INTEREST @ 10% ON SUCH AMOUNT.IT IS MORE REASONABLE AFTER 1ST APRIL 2012, BECAUSE BANK DEDUCT INTEREST ONLY ON TAXABLE INCOME.OF ONE PERSONS IF THEY HAVE NOT ANY OTHER INCOME THAN INTEREST INCOME.

2 Like

(Guest)

oh yes DIBYENDU Sir is right

My ans based on AY 12-13 but I think you needed ans for AY13-14

CA. Abhishek K. Pandey (Manager (Advance)) (901 Points)
Replied 19 May 2012

Originally posted by : DIBYENDU
	IT IS WRONG THAT INTEREST ARISE FROM SAVINGS ACCOUNT IS TOTALLY TAX FREE. UPTO 1ST APRIL 2012 IT IS TOTALLY TAXABLE & AFTER 1ST APRIL 2012 IT IS TAX FREE UPTO RS. 10000.00. ON THE OTHER HAND TOTAL INTEREST PAID ( AGGREGRATE AMOUNT OF INTEREST FROM FD & SAVINGS IN ONE YEAR) BY BANK IF EXCEEDS RS. 10,000.00 THEN BANK DEDUCT INTEREST @ 10% ON SUCH AMOUNT.IT IS MORE REASONABLE AFTER 1ST APRIL 2012, BECAUSE BANK DEDUCT INTEREST ONLY ON TAXABLE INCOME.OF ONE PERSONS IF THEY HAVE NOT ANY OTHER INCOME THAN INTEREST INCOME.

Can you please tell refrence.

CA. Abhishek K. Pandey (Manager (Advance)) (901 Points)
Replied 19 May 2012

194A is not applicable on interest from savings bank. Interest on savings account is exempt income.

Now, let's see what refrence Mr. Dibyendu has to give.

ARINDAM (cs/ MBA(Fin.)) (25 Points)
Replied 21 May 2012

Agreed wid Dibyendu...

ARINDAM (cs/ MBA(Fin.)) (25 Points)
Replied 21 May 2012

Can any 1 pl. guide me up for counter insurgency and spl. tax free imits???

Thanx in advance...

Deep@k (----) (155 Points)
Replied 21 May 2012

Originally posted by : Abhishek K. Pandey
	194A is not applicable on interest from savings bank. Interest on savings account is exempt income. Now, let's see what refrence Mr. Dibyendu has to give.

agreed with abhishek....intt on saving account is exempt