We are making deposits in banks, Recently we received TDS certificates we find the difference in deductions,
for the 1 st half (01.04.2009 to 30.09.2009 ) they deducted TDS @ 22.66% on interest and for the 2 nd half
( 01.10.2009 to 31.03.2010 ) they didn't deduct any amount and finally for the whole year it was adjusted at 10%.
Can any body tell me the procedure for this type of deductions or income tax rule if any
As per Section 194A TDS on Interest other than Interest on debendures & Securities, the Rate was 20% plus Surcharge, Edu & High Edu Cess for the Period from 01.04.2009 to 30.09.2009
on 01.10.2009 on wards it was amended to 10% and the Surcharge & Cess were removed for the TDS deducted for Resident Indian.
Mr. Ashok
From 01.04.2009 TDS on interest other than interest on securities will be deducted @ 10%.
The new rate of TDS of Interest has been effected from 01.04.2009.
Bank has deducted TDS @ 20% (Plus surcharge +Education cess) instead of 10%.
Dear Karnab,
Mr.Jagdish is right, the relevant TDS rate u/s 194A is 10% w.e.f 01.04.2009.
Mr.Karnab in your case it appears that the bank have by oversight deducted higher tax @ 22.66% instead of 10% for first half of the year. Further instead of repaying you excess TDS they have adjusted the same against TDS due for second half of the year.
Please check with your bank and get it clarified. If my assumption is true than what bank has done appears to be practically correct and within the framework of the law.
Warm regards
Kanti Jain
I agree with Kantijain
Dear Karnab
As per Section 194A TDS on Interest other than Interest on debendures & Securities, the Rate was 10% and No Surcharge, Edu & High Edu Cess for the Period from 01.04.2009
You need to clarify with the Bank and understood the calculation with them and make necessary rectification if any with banks.
Dear Sirs,
I suppose for the First Half i.e., upto 30-9-2009 TDS to be deducted on the Bank Deposits in case of Companies is 22.66%, later from 01-10-2009 there is no Surcharge, Education Cess and Higher Education Cess and also the rate has been decreased to 10%. I had this rates with me. I am also not sure that these are the Correct rates or not. So, Please correct me if I am wrong.
With regards,
Thanks in Advance,
T.N.Sathish.
Hi, All
TDs on Interest received on FD from Bank was 20% plus surcharge if applicable and 3% of education cess till 30/09/2009 if the receipient is acompany if receipient is an individual it is 10%. Contact your Bank sir
I got more clarity from banker that the bill was presented in parliament around july 2009 because of elections and it was passed around in august 2009. In the mean time all banks deducted as per previous rates.
So the banks adjusted the excess % over 10% which was already deducted upto 30.09.2009 in the subsequent quarters.
CAclubindia
