Tds on fd

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2017 I have a Mod account in bank. Bank has deducted tds on interest on MOD account which is reflected in my 26AS statement. Now my query is whether I need to disclose only that interest amount and tds in ITR which is reflected in 26AS
OR
I need to disclose whole amount of interest of full year
Because tds deducted on some part of interest but actually interest amount is more than what reflected in 26AS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

08 July 2017 You need to disclose whole amount of interest of full year. Bank may correct TDS later.

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2017 Thanks sir
It's a Mod account where autosweep facility is available. Tds is deducted if interest amount exceed Rs 10000 so in first few month tds not deducted on interest on term deposit. In 26AS interest amt is 3220 n tds amount is 1600(approx) but in account statement interest amount is more than 3220. What I need to disclose in ITR as per 26As

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

08 July 2017 you disclose the amount of interest received by you for the whole year, irrespective of TDS

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2017 For this can I claim deduction u/s80TTA

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

27 July 2025 Here's the detailed answer to your question on **TDS on FD (Fixed Deposit) and MOD (Margin on Deposit) accounts**:

---

### 1. **Disclosure in ITR — Interest Income:**

* You **must disclose the entire interest income** earned during the financial year in your **Income Tax Return (ITR)**, **not just the amount shown in Form 26AS**.
* **Form 26AS** shows only the **TDS details and interest reported by the deductor (bank)**.
* Sometimes, banks deduct TDS only when interest crosses the threshold (₹10,000 for savings/MOD account), and TDS might not be deducted on all interest accrued.
* So, **disclose full interest income from bank statements or passbook**, irrespective of TDS.

---

### 2. **TDS in Form 26AS:**

* Form 26AS reflects **only TDS deducted and deposited by the bank**.
* If TDS is deducted on part of the interest (say on ₹3,220) but your total interest earned is higher (say ₹10,000+), you should still disclose the **total interest income** in your ITR.

---

### 3. **Claiming Deduction under Section 80TTA:**

* Yes, **you can claim deduction under Section 80TTA** on interest earned from **savings accounts and MOD accounts** up to **₹10,000 per annum**.
* Interest earned on **fixed deposits (FDs)** is **not eligible for deduction under 80TTA**; instead, it's fully taxable.
* So for your **MOD account interest**, if it qualifies under 80TTA, you can claim deduction **up to ₹10,000**.

---

### **Summary:**

| Question | Answer |
| --------------------------- | --------------------------------------------------------------- |
| Interest income to disclose | Full interest income earned during the year |
| TDS reflected in 26AS | Only on part of interest where TDS was deducted |
| Deduction u/s 80TTA | Applicable on interest from savings/MOD account (up to ₹10,000) |
| Deduction on FD interest | **No**, FD interest is taxable fully without 80TTA benefits |

---

If you want, I can help with how to report this in your ITR or help you calculate tax liability!

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now