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Tds on interest on fixed deposit.

Prajakta Potdar (Chief Accountant) (142 Points)

04 July 2022

When will interest on fixed deposit becomes taxable. What is limit for non tds on interest on fixed deposit?

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10 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 04 July 2022

Interest on F.D up to 40000/- is exempt from TDS as per section 194A of the Income tax act 1961.

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 04 July 2022

No tds till the interest is upto 5000/-

However you may submit form 15G/ 15H for non deduction of tds upto Basic exemption limit under income tax act 2.5lacs/5lacs

3 Like

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 04 July 2022

As per section 194 A , Interest from Bank Co-Op Society, Post office limit is 40000/( Forty thousand) in Other cases limit is 5000/- (Five thousand) . please refer section 194 A .

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 04 July 2022

@ Prajakta,

How much is your GTI ?

2 Like

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 04 July 2022

No tax is required to be deducted if aggregate amount of interest credited or paid to the payee in respect of time deposit during the financial year doesn’t exceed 40,000 (in case of senior citizen limit is 50,000)

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Mahesh Shah (2308 Points)
Replied 04 July 2022

As per your first qs...income on fd will become taxable if it crosses amounts as per income tax act for different age catagory....age below 60,....60 and above.....80 and above......(income limits,)