Bank file nil deduction of tds fd interest less than 10000?

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AMIT RAJVANSH (Querist)

15 April 2016 Does bank file “NIL DEDUCTION OF TDS” when Fixed deposit interest earned in a financial year is less than Rs.10,000/- which can be seen on TRACES/TDSCPS website?

For example, Mr XYZ will be earning Rs.9,995 as a fixed deposit interst in f.y. 2016-2017. Will this amount earned below Rs.10000 will reflect in TDSCPS/TRACES/26AS under his/her PAN Number?

Please revert back.

CA Puneet B. Gandhi

CA Puneet B. Gandhi (Expert)

15 April 2016 No. If the bank has not deducted TDS of a person (say Mr. XYZ), it will not include the interest payment to such person in its TDS return. Accordingly, that amount will not be reflected in TDSCPS/TRACES?26AS of the assessee.

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AMIT RAJVANSH

AMIT RAJVANSH (Querist)

16 April 2016 There is a client of mine who earned Rs.2558 in f.y 2015-16 as a fixed deposit interest from the Andhra Bank. This 2558 is reflecting against his 26AS on TRACES with no TDS deducted. Is it possible some bank file nil deduction of TDS while others not?

CA Puneet B. Gandhi

CA Puneet B. Gandhi (Expert)

16 April 2016 Generally no bank would include the details of those persons to whom Interest is paid but TDS is not deducted. In the case of your client, it might be possible that bank had first deducted the TDS and filed its return but afterwards reversed the TDS and accordingly revised its TDS return. Due to this the interest amount is reflecting in his 26AS on TRACES with no TDS.

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