30 June 2015
what if, a customer earns 5000/- interest on RD. & 6000/- Interest on F.D for the same financial year. Will tds be deducted.
Individually tds will not be deducted because limits of 10000/- is not crossed in both case.
BUT, banks are urging that since a customer id is created so every type of interest is accumulated and seen for whether to deduct tds or not. so in the above case they are saying that tds will be deducted because agg. interest per account is greater than 10000/-
30 June 2015
The observation of Bank is correct. Since customer ID is same and both accounts are in same branch, TDS is required to be deducted on crossing threshold limit of Rs 10000/-.
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