TDS on interest BY BANKS
This query is : Resolved
11 April 2008
Please let me know whether the BANKS are required to deduct TDS ON INTEREST
IF
the interest payable on SAVINGS BANK and RECURRING DEPOSIT is more than Rs.10000 per year?
IF
the interest payable on SAVINGS BANK and RECURRING DEPOSIT is more than Rs.10000 per year?
11 April 2008
there is no provision to deduct the TDS on saving bank account interest , whatever the amount but on RD intt. bank will deduct the TDS .
11 April 2008
SB account with Bank is exempt from tds.
In the case of Time Deposit with banks the exemption limit is applicable branch wise
In the case of Time Deposit with banks the exemption limit is applicable branch wise
11 April 2008
Thank you sirs.
Section 194A specifies that in case of banks the exemtion limit for the bank for TDS deduction in case of interest is Rs.10000. Is not that limit applicable to all banks / bank branches?
Are there any website links to know the exemption limit applicable to bank branches for TDS in case of time deposit?
If not, please let me know on what basis a branch fixes its exemption limit for TDS in case of time deposit.
Section 194A specifies that in case of banks the exemtion limit for the bank for TDS deduction in case of interest is Rs.10000. Is not that limit applicable to all banks / bank branches?
Are there any website links to know the exemption limit applicable to bank branches for TDS in case of time deposit?
If not, please let me know on what basis a branch fixes its exemption limit for TDS in case of time deposit.
11 April 2008
The exemption limit is branch wise of the banks to which the BR Act is applicable.
Secondly, the section itself is self explanatory.
Secondly, the section itself is self explanatory.
11 April 2008
THERE IS NO TDS ON BOTH S.B ACCOUNT /R.D ACCOUNT INTEREST.
AS FOR BRANCH WISE AND BANK WISE INTEREST LIMIT FOR TDS ,PL. REFER PARA TWO IN CLAUSE (c) OF SUB SEC 3 OF SEC 194A WHICH MAKES IT VERY CLEAR .
IT IS NOT ONLY BANKS,THE BRANCH WISE LIMIT ALSO APPLIES TO BRANCH OF COOP. SOCIETY AND A PUBLIC COMPANY ALSO.
TO SUSTANTIATE MY ABOVE VIEWS, I REPRODUCE BELOW WHAT OUTLOOKMONEY.COM VIEWS AS PUBLISHED BY THEM.
"An important change was made a few years ago in the context of deposits kept in banks, co-operative societies engaged in banking business, and approved public companies engaged in the business of providing finance for housing like HDFC. In the case of time deposits kept with these institutions, tax is to be deducted if the interest payable by a branch to a depositor exceeds Rs 10,000 in a given financial year. In other words, the bank branch should deduct tax at source if the aggregate interest payable to a depositor on all his deposits (in the same branch) exceeds Rs 10,000. Of course, depositors often try to circumvent this provision by distributing their deposits to ensure that the interest earned in any one branch during each financial year does not exceed Rs 10,000.
Recurring deposits have been excluded from tax deduction provisions. Hence, interest earned on recurring deposits is not subject to withholding of tax. Interest on savings bank accounts is also not subject to TDS. Likewise, co-operative banks need not deduct tax in respect of the interest paid to shareholders on their deposits.
If the investor estimates that the tax on his total income from all sources is likely to be nil, he can file a declaration in form 15H and submit it to the interest-paying institution to ensure that he receives the interest without TDS. Of course, a false declaration invites fines and prosecution as already discussed."
SOURCE:OUTLOOKMONEY.COM
R.V.RAO
AS FOR BRANCH WISE AND BANK WISE INTEREST LIMIT FOR TDS ,PL. REFER PARA TWO IN CLAUSE (c) OF SUB SEC 3 OF SEC 194A WHICH MAKES IT VERY CLEAR .
IT IS NOT ONLY BANKS,THE BRANCH WISE LIMIT ALSO APPLIES TO BRANCH OF COOP. SOCIETY AND A PUBLIC COMPANY ALSO.
TO SUSTANTIATE MY ABOVE VIEWS, I REPRODUCE BELOW WHAT OUTLOOKMONEY.COM VIEWS AS PUBLISHED BY THEM.
"An important change was made a few years ago in the context of deposits kept in banks, co-operative societies engaged in banking business, and approved public companies engaged in the business of providing finance for housing like HDFC. In the case of time deposits kept with these institutions, tax is to be deducted if the interest payable by a branch to a depositor exceeds Rs 10,000 in a given financial year. In other words, the bank branch should deduct tax at source if the aggregate interest payable to a depositor on all his deposits (in the same branch) exceeds Rs 10,000. Of course, depositors often try to circumvent this provision by distributing their deposits to ensure that the interest earned in any one branch during each financial year does not exceed Rs 10,000.
Recurring deposits have been excluded from tax deduction provisions. Hence, interest earned on recurring deposits is not subject to withholding of tax. Interest on savings bank accounts is also not subject to TDS. Likewise, co-operative banks need not deduct tax in respect of the interest paid to shareholders on their deposits.
If the investor estimates that the tax on his total income from all sources is likely to be nil, he can file a declaration in form 15H and submit it to the interest-paying institution to ensure that he receives the interest without TDS. Of course, a false declaration invites fines and prosecution as already discussed."
SOURCE:OUTLOOKMONEY.COM
R.V.RAO
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
