What is RBI guide line for deducting tax at source by banks for paying interest on fixed deposits to individual customers?
Is it correct that no tax is deducted at source by the banks until total interest paid on FDs of an individual customer in a financial year is more than Rs.50,000 (Fifty thousand) ?
There is scope for confusion on this point.
Some banks include a column in downloaded interest certificate itself for TDS where they show 0 (zero) if no tax is deducted.
It is very clear and there is no confusion.
But other banks do not have any such column in their downloaded interest certificate and they do not mention if tax has been deducted or not . Total interest paid in a Fy may be less than Rs. 50,000/
The customer has to run to the branch for knowing the actual position.
Would any expert kindly clarify?
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