treatment of tds on intrest

when Bank deduct TDS and deposit to govt. he provide TDs certificate. on TDS certificate you can claim it.

tds certificate will not b provided by the bank to the customer as there is no amount to his credit for claiming tds.. how can customer claim tds if bank has not given any credit of intrest to him

Then you are confused . clear from bank . no TDs deducted by bank.

Yes, you are right Mr. Ram Avtar Singh, Because without Interest Credit how the bank will deduct the TDS, once they deducted, bank shold have deposit to the Central Govt., after that the bank should have  file the TDS Returns, They must have given the TDS Credit to the Customer, advice me if am wrong
 

MURAGAIAH

The bank will credit the account of the customer for interest every year as it has to book the income on accrual basis. And if the interest so credited is above the threshold limit for TDS, it shall deduct the TDS and issue a TDS Certificate to the depositor. In this case, the depositor shall also book the income accrued year by year as per the TDS Certificates. Say suppose in any year, the depositor withdraws the FD, then whole of such interest shall be reversed by the bank and the depositor shall also reverse the interest accrued till date. On this transaction, there shall be no TDS impact. In the earlier years, the TDS claimed had been availed by the depositor on yearly basis. Further, the tax so deducted towards the interest, which is now reversed, shall be recovered from the depositor from the principal amount as whole of the interest is reversed and the bank has deposited the TDS to the Govt. and the depositor has taken its benefit.

When reversing interest credited on account of premature withdrawal, TDS already done is usually deducted from the Principal amount and the balance given back to the depositor. Depositor will have no interest to book in his returns and accordingly he will claim refund or adjust against his tax payable under other heads of income. He will get TDS Certificate from bank that will be based on Interest Credited. He will have to take a printout of the FD Account Number that will not only indicate the Interest paid and Tax Deducted but also the interest reversed so he can have proof of no interest earned. However, I am not sure how to make adjustments if the reversal is done in the subsequent accounting year, because in the revious year he may have returned interest income and claimed the TDS.

Thanks  for sharing  your views  by all

One the fund is deducted and deposited in the governemnt account it cannot be refunded by the bank .

The TDS Certificates can be collected by the account holder at the year end and the same can claimed for the computation of to Total Income.

No wats the problem dear.

I case of any query pls contact me.