Help on tds on interest on fdr.

as to the first ques i m sure bank will deduct tds as soon as the interest goes beyond 10000

bank will deduct TDS as soon as the aggregate of interest accrues beyond Rs. 10000/- at the end of the or at the time of payment whichever is earlier.

Bank will not deduct any TDS for Ist year since the interest is accrued less than 10000 at the end of the f.y.

for  II nd year since the interest accrued goes beyond 10000 it will deduct TDS at the end of the f.y.

the payment will be made after deducting TDS.

IF reinvestment is made the bank will deduct TDS if Interest accrues beyond 10000 during the F.Y.

Dear ankur

1. in case of interset on FDR = or > 10000/- during the. F. Y 2012-13, Bnak deduct the TDS @ 10% (if depositer has PAN otherwise 20%)

2. Always M.V shown on the FDR + Principal Value + Interst as the depositer attract the deposiit scheme.

3 Bank will renew fthe fdr on 05.07.12 of Rs. 128066-TDS

Dear All

The same problem I also came across with HDFC bank and I took up the matter by mail to Managment  along with copies of Fixed Deposit Receipts wherein the maturity value is mentioned.  All that they said that they have not visualised this situation and they are trying to insert an amendment in the FD receipt itself that if TDS is there then, the maturity value would be xxxx and if there is no PAN, after the requisite TDS, the maturity value would be xxxxx.  Finally the Bankers regretted for their mistake and assured the best services always ? (Whether it is a fact or not to be seen).  In fact I noticed that the amount credited was less than the amount shown in the FD Receipt and they also did not send me the TDS certficate in Form No 16A which they ought to have sent it on a quarterely basis which they failed to do so.  If only they had sent it, I would have calculated the TDS and arrived at.  

The method of calculation is once the interest payable has exceeded the limit, the computer program is designed to the effect that it deducts the amount since u/s 194A, the TDS is required to be deducted once the amount is credited to the account either as a payment or as a liability.  Accordingly, the interest  calculation for the next quarter or half year or yearly basis depending upon the contract, it will vary which would be less than the amount actually paid to you since after TDS, the amount standing to the credit of the FD amount would be less actually.

This is really a problem and this thin line of calcualtion of interest has not been explained and even the Bank Manager so called M.B.As do not know about this.

Dear Ankur,

1 Bank will not deduct any TDS for Ist year since the interest is accrued less than 10000 at the end of the f.y.

2 Because theere is no TDS deducted for FY.2011-12.

3 The payment will be made after deducting TDS if interest accrued is more than 10000/- for FY. 2012-13

4 it will be after TDS

According to Sec. 194A TDS is deducted when the aggregate of interest accrues beyond Rs. 10000/- at the time of credit or at the time of payment whichever is earlier.

1.For financial year 2012-2013 Since in this case interset on FDR is less than 10000/-  no need to deduct TDS.

2. Maturity value shown on the FDR is  Principal Value + Interst, hence it includes TDS also.

3. since in financial year 2012-13 interest is not more than 10000.00 hence no TDS will be deducted hence amount specified in the FD will be given by the bank.

3 Bank will renew the FDR on 05.07.12 of Rs. 128066 Less TDS.