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194A Savings Bank interest

Mohd. Nadeem Khan (AAO) (93 Points)

12 August 2021

is TDS on SB int applicable? if so what is the threshold limit...?

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prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 12 August 2021

Savings account bank interest comes under section 80TTA of Income tax act .Up to 10000/- saving bank account interest is exempt age less than 60 years .
section 194A mentioned above is different section. it is for Fixed deposit interest .

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Mohd. Nadeem Khan (AAO) (93 Points)
Replied 12 August 2021

194A is regarding deduction of TDS on interest...?

Whether interest on Savings bank will also suffer TDS after a certain limit...? what is that limit...?

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prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 12 August 2021

Savings bank account interest exemption is up to 10000/- .

Mohd. Nadeem Khan (AAO) (93 Points)
Replied 12 August 2021

My question is about applicability of deduction of TDS on SB interest and not exemption..

CA Krishna Kumawat (CA) (136 Points)
Replied 12 August 2021

No.Interest paid on savings account by a banking company to a resident individual is not liable for TDS.TDS u/s194A is applicable only on time deposits.

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prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 12 August 2021

Yes, no TDS on saving bank account .

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CA Puja Sharma (Chartered Accountant) (5010 Points)
Replied 12 August 2021

No TDS is not deducted on Saving Bank Interest, However, if there is any linked FD or Sweep FD then TDS will be deducted on the interest accrued on that sweep FD.

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