TDS clarification required

shashank garg (Article ) (49 Points)

20 May 2011  

Dear Members, 

Can anybody provide me with a clarification. 

Suppose  a banking company pays interest on FD and the interest payment is not likely to cross Rs. 10,000/- in a year. 

However due to any reason say the depositor makes more deposit, the interest payable to him crosses Rs. 10,000/- and the bank deducts the TDS on complete amount. 

My quarry is whether bank is required to deposit interest on late deduction of tax if the bank has already credited some interest to the depositor in previous quarters.