Budget updates move fast, keep up with CAclubindia Pro. Subscribe today!

TDS u/s 194A

245 views 4 replies

Yahiya

Student CA Final

81 Points Joined May 2014

Is tax deductible only from the interest paid on recurring and fixed deposits, and not from the interest paid on savings and current accounts in the bank ?

Replies (4)

sreeja reddy

Articled assistant

146 Points Joined January 2017

In my view, TDS is also deductible on interest paid on savings acccouts if the amount of savings Interest exceeds 10,000 rs in a financial year

J S BHAVSAR

CONSULTING

1320 Points Joined April 2008

But certain banks are not deducting TDS on Savings Account interest even if the interest went above Rs 10000.

sreeja reddy

Articled assistant

146 Points Joined January 2017

Yeah Mr.Bhavsar , in case if the customer submits form 15g/15h to the bank then the banks doesnot deduct tds on interest credited to the customers savings bank account.

Yes, tax is deductible at source on interest earned on time deposits (FD/RD) if such income exceeds the threshold limit (Rs.10,000 pa). As I understand, no tax is deducted at source for interest income from SB account in any bank. Further, no interest income is earned on current account.