Bank ot deducting tds

TDS 791 views 4 replies

Wae Jing Lonthaw

Others

345 Points Joined March 2014

I have account in 2nd bank where there are FD whose Interest anuualy is less than INR 10,000/- (I think but not sure) with FD Interest payable on maturity... but the bank has not deducted TDS for FY 2012-2013, FY 2013-2014.....

I think the rules have changed and we need to pay TDS if Annual Interest on all FD exceedes INR 10,000/- per annum? Not that I only have FD in single branch of this Bank and total annual Interest from FD's in this bank is less than INR 10,000/-... Do they need to deduct TDS on FD interest anually?...As combining FD Interest from FD of second bank the annual Interest paid exceedes INR 10,000/- ....

Replies (4)

Deepak Gupta

CA Student

15927 Points Joined May 2011

Section 194A:
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TDS will be deducted from FD interest, if interest > Rs. 10,000 p.a.
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Earlier the limit of Rs. 10,000 was calculated branch wise for same bank.
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But w.e.f. 01.06.2015, the limit of Rs. 10,000 will be calculated bank wise (i.e. aggregating the interest from different branches of the same bank)
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[Note: As per the new proviso, the bank should have adopted core banking solutions (which has already been adopted way back)]
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Earlier people used to avoid TDS by splitting the FDs among different branches of the same bank. Now, this won’t be possible after the amendment. But people, who have made FDs with different banks, don't need to worry about this.
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Actually, the amendment should have been assessee wise, something like a universal account number for FDs, where all the FDs among different banks are consolidated under one account for TDS purpose.

vaibhav

student

221 Points Joined July 2010

Still the proviso of Form 15G - H prevail. Assesse can apply for not to deduct tds.

Wae Jing Lonthaw

Others

345 Points Joined March 2014

How do I calculate Income from FD with interest paid on maturity(Cumulative Interest) having around 8 years maturity period and report Income from this FD annually in ITR?

Wae Jing Lonthaw

Others

345 Points Joined March 2014

The interest on Savings Account Deposit is applicable on amount above INR 10,000 and want to know if this for savings account combined in all banks or individual?