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Timing of tds on fixed deposits

CA SONIYA AGARWAL (self practice) (3005 Points)

28 November 2013

WHEN DO THE BANK DEDUCT TDS ON FIXED DEPOSITS , IS IT QUATERLY OR YEARLY IF QUARTERLY HOW CUD BANK DEDUCT WHEN INTEREST ON FIXED DEPOSIT ACCURES YEARLY , KINDLY ANSWER SOON ITS URGENT

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5 Replies

CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)
Replied 28 November 2013

Always it is being asked while opening fixed deposit, want to credit interest annuallly or quarterly, semi annually.

TDS is to be deducted by bank when they will give credit. it will be quarterly only as guideline by RBI issued.

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 28 November 2013

It depends on the specific schemes and tenure of FDs. Generally if the FD is more than 1 year they give quarterly interest credits which though is not received in pass book and is so at the time of maturity. It is better to view 26AS at reasonable intervals to ascertain if there is TDS and go for tax planning. Also interest on FDs in ITRs should be reported on accrual basis and not receipt basis.

Regards,

C.A Basant Raj kabra (no) (59 Points)
Replied 28 November 2013

Yes its deducted when it's credited in account

paresh jain (student) (22 Points)
Replied 29 November 2013

hii dear...

Hojefa (Ca final) (178 Points)
Replied 29 November 2013

General Rule is TDS is to be deducted either on credit or payment, so

bank is crediting Customer A/c at time of payment of interest either annually

, semi or quarterly in customers A/c hence TDS is to be deducted at 10% (Pan), if pan's noth available then 20% rate, subject to condition that Customer has not given 15h/ 15g form to bank.