Tds on interest on fixed deposits

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This query is : Resolved

kinjal tanna (Querist)

01 May 2013 Dear Sir,

if I am having FD and if doing pre mature closure.
then wht would be the effect on my interest if interest is cumulative.

and wht if my TDS is already deducted and interest whch i received is less in front of TDS deducted,

Please resolve on urgent basis..

Preety Chawda

Preety Chawda (Expert)

02 May 2013 As far as Interest receivable is concerned, u will get it as per normal bank practice of the terms decided while investing in FD.

Some of the banks give the interest saving rate of Interest in case of prematured FDs.

There should not be any problem as far as U get tds certificate from bank showing the actual amount of TDS deducted. It does not make any difference if Interest recd is less than TDs deducted. U will get the TDS credited of whatever shown in TDS certificate.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

13 June 2013 If you premature the FD then the bank will give you less interest by 2% from the rate applicable to the holding period of your FD. The excess deduction of TDS will be adjusted by the bank from the amount already deducted by calculating interest from the date of FD till you have pre-matured. Even if the TDS is more than the required TDS the bank refund you, you have to claim in your return of income. Anyhow, the TDS is only 10^ whereas if you are in the bracket of 30% then you have to pay the tax and that excess TDS can be adjusted against total payable by you.

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