TDS on saving account

As per section 194A  - TDS is not deducted if your accounts in individual bank (interest from all the branches of a bank clubbed together) earn a net interest of less than Rs 10000 over a financial year.

However, if you have two bank accounts in the same bank, irrespective of different branches, and net interest earned is over and above Rs 10000 collectively from both the accounts but not individually, still TDS will be deducted.

Generally, it doesn't happen that Banks deduct TDS on savings bank interest reason being - Interest earned is less than Rs.10,000 or Bank do not have information of interest from other bank accounts or Form 15G/H is submitted by the assessee. 

For the purpose of this section; Interest includes Income from :

• Deposits with banks;
• Deposits with post offices
• Fixed deposit schemes
• Recurring deposit schemes