Tds on fdr interest under cbs system.

Save Share

This query is : Resolved

Ankit (Querist)
Follow

03 July 2015 Whether interest received on FDR is seen bank wise or is seen in total while calculating limit of Rs.10000 u/s 194A

For Eg:- If i have 2 FDR's in different banks and interest on each is Rs.8000 so whether TDS will be deducted by bank on the same?

Also what if these FDR's are under different branches of same bank?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
Follow

03 July 2015 Interest received on FDR is seen bank wise and branch wise. So if interest is paid by different branches of same bank TDS will be deducted by each branch separately if interest paid by any of them is more than Rs. 10000/-.

CA SONIYA AGARWAL

CA SONIYA AGARWAL (Expert)
Follow

03 July 2015 The budget for financial year 2015-16 proposes to make limit of Rs 10,000 for tax deduction applicable in respect of Fixed deposits with all the branches taken together in case the bank or the Company has core banking solution. So now you cannot escape the clutches of TDS even if you open your bank fixed deposits with different branches of the same bank in case the aggregate of the interest on all the deposits is likely to exceed the threshold limit as above as almost all the banks now have core banking solution.

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