01 January 2015
I have a query. As per IT act if interest income from fixed deposit exceeds Rs. 10000 banks are liable to deduct TDS.
Person have 3 bank deposits with diff. time lines. 2 FDs got matured and the interest is being credited to bank account. Now at the time of maturity of 3rd deposit total interest if being considered on FDs its exceeding 10,000. Now what bank will do it will deduct tax on Interest amt @10% or total interest credited during the FY @10%
01 January 2015
Bank will consider the Interest on all FD's credited during one Financial Year. If the amount exceeds Rs 10000/- TDS will be deducted. Bank will consider interest on accrual basis not on Payment basis.
For Example:
FY 2014-15
Interest from Two FD created and matured during FY 14-15 is Rs 8000/-
Now another FD is maturing in FY 2015-16. Interest credited on 31.03.2015 on accrual basis is Rs 3000/-. Now threshold limit of Rs 10000/- is crossed so TDS will be deducted on total Interest amount of Rs 11000/- @ 10% (Provided PAN given otherwise 20%).
03 January 2015
FOR banking company not deduct the tds on intt if your intt. upto rs 10000/- in year. when amount exceeds rs. 10000/- in during the year then they deduct the tds on whole intt. amount@10%.