Tds on rd interest accrued in banks
Rajeesh (Administrative Officer) (24 Points)
03 July 2016Rajeesh (Administrative Officer) (24 Points)
03 July 2016
CA FARHAT MIYAN
(CA)
(40 Points)
Replied 03 July 2016
Dear Rajeesh,
The depositor has the option to either reinvest the interest earned on recurring deposit or to withdraw the interest earned on recurring deposit.
As you mentioned in your query You have taken the option to reinvest the interest amount.
However TDS would be deducted in both of the cases. TDS would be deducted @ 10% of the interest earned.
Hence TDS deduction is as per existing tax law.
Shubham Gupta
(Business Consultants)
(2077 Points)
Replied 04 July 2016
hello,
although you opted for interest payment at maturity but bank becomes liable to pay and in order to record in thier books(Bank) TDS also need to be deducted at the same time
CA MANISH BINDAL
(CHARTERED ACCOUNTANT )
(535 Points)
Replied 04 July 2016
Agree with above experts. Here you can apply for refund of TDS if your income does not exceed the basic exemtion limit. Get e-file your income tax return and claim such amount of TDS and it will be refunded to you.
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