Correct rule to be followed by banks

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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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