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TDS u/s 194A

Yahiya (Student CA Final ) (81 Points)

12 July 2018

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 ?

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4 Replies

sreeja reddy (Articled assistant) (142 Points)
Replied 12 July 2018

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

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J S BHAVSAR (CONSULTING) (1288 Points)
Replied 12 July 2018

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

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sreeja reddy (Articled assistant) (142 Points)
Replied 12 July 2018

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.

CMA Poornima Madhava (CMA) (13097 Points)
Replied 12 July 2018

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.