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TDS query

Surendra Agarwal (MANAGER FINANCE AND BUSINESS PLANNIN) (289 Points)

07 July 2011

How TDS on bank FDR is made? Any one please explain?

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12 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 07 July 2011

TDS is deducted on Interest received from Fixed Deposits. The threshold limit is Rs. 10000. The rate of TDS is 10%, if PAN quoted, and 20% if PAN is not quoted. The TDS is deducted u/s 194A.

Regards,

Devendra K

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Ayush Tripathi (ca final) (169 Points)
Replied 08 July 2011

same as devendra said...u can also refer ajay jain book for more details.

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 08 July 2011

Originally posted by : Devendra
	TDS is deducted on Interest received from Fixed Deposits. The threshold limit is Rs. 10000. The rate of TDS is 10%, if PAN quoted, and 20% if PAN is not quoted. The TDS is deducted u/s 194A. Regards, Devendra K

agreed read section 194A

Surendra Agarwal (MANAGER FINANCE AND BUSINESS PLANNIN) (289 Points)
Replied 08 July 2011

Whether it is diducted on receipt basis or on due basis,since fixed deposit is on term basis then how interest is calculated for tax purpos,

Surendra Agarwal (MANAGER FINANCE AND BUSINESS PLANNIN) (289 Points)
Replied 08 July 2011

If deposit in joint names then which person pan number should be given to avoid higher taxation?

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Surendra Agarwal (MANAGER FINANCE AND BUSINESS PLANNIN) (289 Points)
Replied 08 July 2011

Whether no tds attracted if both pan number and form 15G/H filled

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 08 July 2011

Originally posted by : Surendra Agarwal
	If deposit in joint names then which person pan number should be given to avoid higher taxation?

in absence of any percentage mandate to bank, such deposit should be treated in 1st persdon name with add on name for joint holder.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 08 July 2011

Originally posted by : Surendra Agarwal
	Whether it is diducted on receipt basis or on due basis,since fixed deposit is on term basis then how interest is calculated for tax purpos,

accural basis, at the end of every finance year, interest is credited to the TDR.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 08 July 2011

Originally posted by : Surendra Agarwal
	Whether no tds attracted if both pan number and form 15G/H filled

unless clear mandate is given to bank for percentage of deposit allocated to joint holders, 1st holder will be treated as owner of funds and TDS would get deducted from 1st holder only.

reg form 15G/H, if the pan holder is below tax limit in previous year, then only bank will consider the same, in case the PAN holder has taxability in previous years and have obligation to file return, then bank will deduct TDS without considering the 15G/H

Pranav Bembi (Practice) (56 Points)
Replied 08 July 2011

Originally posted by : U S Sharma
	Originally posted by : Surendra Agarwal If deposit in joint names then which person pan number should be given to avoid higher taxation? in absence of any percentage mandate to bank, such deposit should be treated in 1st persdon name with add on name for joint holder.