Fixed deposit interest

This query is : Resolved

khyati shah (Querist)
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08 December 2015 When my annual interest earning from fixed deposit is less than Rs. 10000 than on such interest can bank deduct tds? I have only one fd and no other fd in any bank of same branch. Request to please reply soon.

CA CS Jainam Shah

CA CS Jainam Shah (Expert)
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08 December 2015 No bank cannot deduct TDS on interest payable less than Rs. 10,000/- for F.Y.

khyati shah

khyati shah (Querist)
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08 December 2015 The annual interest on my fd is rs.9500 Still my banker has deducted tds. What is the solution that I may avail.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 December 2015 They should not deduct TDS unless Rs 10000/- threshold limit is crossed. Please check whether you have some interest from auto sweep (if you have that facility). Interest earned through auto sweep is also FD interest.

If there is only Rs 9500/- and still TDS has been deducted write a complain letter to the bank quoting provision of section 194A which clearly mentions a threshold limit of Rs 10000/-.

khyati shah

khyati shah (Querist)
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09 December 2015 Thankyou so much for the reply....

khyati shah

khyati shah (Querist)
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09 December 2015 Thankyou to both the experts for ur kind reply to my query

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