Correct rule to be followed by banks

Banks are not required to deduct tax at source (TDS) on interests paid on FDs of senior citizens if the amount does not exceed Rs. 50,000/- in a year.

If interest in a year is more than this threshold, then on what amt TDS should be levied by bank?

On the entire amt of interest paid/accrued, or on the amt beyond the threshold?

Replies (1)

On entire anount, without any deduction. 

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