Tds on fdr

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Kartik Charnalia (Querist)
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12 July 2012 Dear Sir,
I want to know that when will bank deduct tds on fdr ,i.e. its deducted on mature of fd and is it deducted on above rs. 10000p.a.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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12 July 2012 1. TDS on interest on FDR is dealt with Section 194A.

2. As per Section 194A TDS is required to be deducted if the amount of interest during the year exceeds Rs. 10,000.

3. TDS is deducted on a monthly basis on accrual basis and NOT at the time of maturity.

C.A Anshul Singhal

C.A Anshul Singhal (Expert)
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12 July 2012 agree with siddhartha.
but limit of tds on fd Rs 10000 per bank branch.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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12 July 2012 Mr.Kartik,

TDS is not deducted at the time of maturity but it is deducted accoridng to the scheme of the FD.
If it is monthly compounding then monthly, quarterly compounding then quarterly or if it is yearly then yearly TDS is deducted.