banner_ad

TDS rate on deposits

TDS 444 views 2 replies

Sir..

My bank have deducted TDS u/s 194A on deposits. They deducted 15.7% on the internet portion upon maturity. I came to know that the rate of deduction is 10% as per the Act. I receive no response from the banker even after repeated requests. Kindly let me know the logic behind 15.7%. pls help.

Regards

Replies (2)

The deduction of 15.7% by your bank under Section 194A seems incorrect.

Here's why: Correct TDS Rate The correct TDS rate under Section 194A for interest on deposits is: - _10%_:

For interest paid on deposits, if the amount exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). Surcharge and Cess

However, there are additional levies that might explain the 15.7% deduction: - _Surcharge_: A 10% surcharge is applicable on TDS if the deductee's income exceeds ₹50 lakhs. -

_Cess_: A 4% health and education cess is applicable on the TDS amount.

Calculation Assuming the surcharge and cess are applicable, the calculation would be: 10% (TDS) + 10% (surcharge) = 11% 11% + 4% (cess) = 15.40% ≈ 15.7%

 However, this is still not justified, as the surcharge and cess should not be applicable directly on the TDS rate.

Actionable Steps Given the bank's unresponsiveness, consider:

1. _Filing a complaint_: Reach out to the bank's nodal officer or the Banking Ombudsman.

2. _Claiming refund_: File your income tax return and claim a refund for the excess TDS deducted.

 

Thank you sir for the valuable reply...


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details