Tds u/s 194a

This query is : Resolved

Archana Das (Querist)
Follow

17 July 2012 hi friends,
i wanted to know whethr TDS will be deducted on interest earnd above 10000 even if i am m coverd under the basic exemption limit of 2 lacs.??

swasti

swasti (Expert)
Follow

17 July 2012 Yes if interest is earned above Rs 10000/- the interest payer needs to deduct TDS. However if you are covered under the basic exemption limit of Rs 2 Lacs, you can submit duly filled Form 15G for non deduction of TDS.

Archana Das

Archana Das (Querist)
Follow

17 July 2012 thank you very much

CA. Sunil Kumar

CA. Sunil Kumar (Expert)
Follow

18 July 2012 Tax at source is deducted as per Income Tax Act regulations prevalent from time to time.

If interest paid or occured or likely to be paid for year exceed Rs. 10000 then bank will deduct TDS

TDS at applicable rate or 20% whichever is higher is deducted where PAN is not registered with Bank

Prevailing TDS rate for Individual/Firms/Domestic Company is 10%

If any one wish to avail TDS exemption, he has to submit for 15G/H with Bank.

Hence if your interest is higher than 10000 bank will deduct TDS unless u submitted form 15G/H with Bank.

Message likes : 1 times

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