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Interest on bank FDs and Insurance commission is subject TDS rate of: 1 point

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Sheethal Kn

1 Points Posted on 31 August 2020

Interest on bank FDs and Insurance commission is subject TDS rate of:

1 point

Replies (3)

Quick Summary

This discussion clarifies the Tax Deducted at Source (TDS) rates applicable to interest earned on bank Fixed Deposits (FDs) and insurance commissions. For FDs, TDS is deducted at 10% if interest exceeds £40,000. For insurance commissions, Section 194D outlines rates of 5% or 10% if commission exceeds £15,000, with reduced rates of 3.75% or 7.50% applicable between 14th May 2020 and 31st March 2021. Even if not deducted by the bank, this interest is taxable and will appear in tax returns.

erick dsa

2 Points Posted on 31 August 2020

1.TDS on interest on FD will be deducted at 10% if the interest amount exceeds ₹40000.
2.TDS on insurance commission - As per sec 194D , if commission paid exceeds ₹15000 , TDS to be deducted at 5% and 10% for person other than company and domestic company respectively.

abhay garg

Senior auditor

110 Points Posted on 31 August 2020

In case the insurance commission is paid before 14th May 2020 than TDS under section 194D is to be deducted at the rate of 5% or 10% as the case may be, where, insurance commission is paid after 14th May 2020 than TDS under section 194D is to be deducted at the rate of 3.75% or 7.50% as the case may be, the reduced rate is applicable only for the period from 14th May 2020 to 31st March 2021.