24 September 2010
I HAVE Rs10000 IN MY SB A/c,WOULD THE INTEREST CREDITED ON SUCH AMOUNT BY BANK BE LIABLE FOR TDS?IS THERE ANY LIMIT FOR TDS ON BANK INTEREST
24 September 2010
If the interest amount is paid by a banking company to which the Banking Regulation Act, 1949 applies: No deduction is to be made on interest of Rs.10,000/- or below paid or credited during the financial year.
24 September 2010
Section 194 A interests other than interest on securities
Who can deduct the TDS? Individual or H U F whose total sales, Turn over or Gross receipts exceeds the limits prescribed for tax Audit u/s 44 AB.
Limits
The amount by way of Interest exceeds Rs. 5000/- during the financial year. Rs. 10,000/- to the following entities
i) A banking company ii) A co operative society engaged in the banking business iii) Post office on any deposit under any scheme of central Government.
Rate of TDS
10 % on the amount of interest.
Exemption for saving bank Account from deduction of TDS (Vide circular no 617)
Conclusion
FD bank interest is covered for deduction..Saving bank account will not attract the TDS provision
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