TDS DEDICATION ON FD INTEREST

Rule for deduction of TDS is "Credit or Payment whichever is earlier". It is applicable for all categories including bank interest.

Bank may pay interest on deposits either monthly, qtrly, half-yearly or yearly basis. They should follow the above principle and deduct TDS accordingly.

If in a case, where no interest is actually paid during the year, then also at the end of financial year, Bank should provide due interest in customers' account as per accounting norms after deducting requisite TDS.