Is interest on recurring deposit liable to TDS u/s-194A.
6 Replies
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 07 January 2012
yes, if it exceeds the threshold limit.
SRIKAR BABU
(AM)
(102 Points)
Replied 07 January 2012
No, in respect of the income credited or paid in resect of recurring deposits with a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred in section 51 of that act.)
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 07 January 2012
I do not agree with you. TDS is deductible on recurring deposit also. Can u pls provide the relevant provision which says TDS is not deductible from RD account interest.
Sanket
(!..Live to Give..!)
(16427 Points)
Replied 07 January 2012
Exemptions from TDS (Section 194A [3])
Interest paid or notified under any scheme notified by the central government like
- Post office time deposit account
- Post office recurring deposit scheme
- Post office monthly income account
- National saving certificate
- Kisan Vikas patra/Indira vikas patra
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 07 January 2012
You mean only Post Office Recurring Deposit Scheme. I was referring to interest paid by bank.
SRIKAR BABU
(AM)
(102 Points)
Replied 09 January 2012
Hai, I am unable to find the related provision for my reply in this regard. But, I gave my answer after checking with ICICI and HDFC Banks. Check the link given.
https://www.icicibank.com/Personal-Banking/account-deposit/recurring-deposits/faqs.html#rfdtds
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