Tds u/s 194a

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Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2011 sir,
Please tell me the procedure for the deduction of TDS on the Interest on bank FDR's.
Please confirm me also whether the limit of Rs. 10,000 extend to the whole bank or for the single branch of a bank.

CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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04 December 2011 As per sec 194A if you get interest on FDR.then bank is required to deduct TDS at the rate of 10%....limit of RS. 10000 extends to single branch.

1.if you have diffrent FDRs in same branch then limit of rs. 10000 applicable to this branch.branch required to deduct tds if interest from FDR more than 10000.

2. if you have diffrent FDR's in diffrent branch then each branch has limit of Rs.10000.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2011 sir,
If upto the mid of the year the total of FDR interest becomes 8000.00 and FDR's are going to mature on the january of the year, is it require to deduct TDS by the banks?

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CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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04 December 2011 No bank not required to deduct TDS in above case....alternatively you can file form 15G in case you have income less than exemption slab applicable to assessse for no deduction of TDS

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