Tds on bank interest above 1 lac

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Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2012 Sir,
Some where i was aware there is a circular on TDS that if the interest on deposit is exceed then above 1.00 lac for the financial year, Bank Have to compulsory deducted the TDS.
IF any update provide pl on this.

Thanks
Kalpesh mehta

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

22 June 2012 Dear Mr.Kalpesh,

It is compusory to deduct the TDS u/s 194A @10% if the amount of interest from one branch of the bank exceeds Rs. 10,000.
However, there is exemption for interest on saving Account.

There is no Circular for the amount of Rs. 1 lakh.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2012 Sir
Thanks for revert, I was in mind that even after submiting 15G /15H Bank have to deducted TDS if the Interest amount exceed Rs 1.00 Lac

Thanks

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

22 June 2012 After submitting Form 15G/15H, TDS is required to be deducted if the amount of interest exceeds the maximum amount not chargeable to tax, i.e, the amount exceeds the exemption limit.

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