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TDS on saving account

riyaz saif (40 Points)

29 May 2018

Interest received on saving account more than 10000/-?TDS shall be deducted or not?

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7 Replies

Miten Bhanushali (Student) (37 Points)
Replied 30 May 2018

No... tds will not deduct

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rama krishnan (12244 Points)
Replied 30 May 2018

TDs will be deducted

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 30 May 2018

Yes... I agreed to Mr Rama Krishnan.,

TDS will be deducted if interest above 10k.

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CA CS NITIN MAHAJAN (CA ) (273 Points)
Replied 30 May 2018

Tds is not deductible on saving account interest.

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 30 May 2018

Dear Mr CA CS NITIN., Interest above 10k then TDS will be deductible for the interest of its SB...

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Prajjwal Kaushik (Finance Professional) (6216 Points)
Replied 30 May 2018

As per section 194A - TDS is not deducted if your accounts in individual bank (interest from all the branches of a bank clubbed together) earn a net interest of less than Rs 10000 over a financial year.

However, if you have two bank accounts in the same bank, irrespective of different branches, and net interest earned is over and above Rs 10000 collectively from both the accounts but not individually, still TDS will be deducted.

Generally, it doesn't happen that Banks deduct TDS on savings bank interest reason being - Interest earned is less than Rs.10,000 or Bank do not have information of interest from other bank accounts or Form 15G/H is submitted by the assessee.

For the purpose of this section; Interest includes Income from :