TDS- INTEREST ON BANK DEPOSITS

Jun 28th, 2015
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Banks deduct tax (TDS), if the total interest earned on all your fixed deposits in the bank is greater than Rs.10,000/- during a financial year. The tax liability for the purpose of TDS is determined at the branch level. Whenever the bank pays an interest on your fixed deposits, it checks it for TDS eligibility. If it qualifies, the TDS is deducted. TDS is also deducted on interest accrued (but not yet paid) at the end of the financial year viz. 31st March every year. The rate at which TDS is deducted varies according to the category of account holders.

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TDS-INTEREST ON BANK DEPOSITS:Banks deduct tax (TDS), if the total interest earned on all your fixed deposits in the bank is greater than Rs.10,000/- during a financial year. The tax liability for the purpose of TDS is determined at the branch level. Whenever the bank pays an interest on your fixed deposits, it checks it for TDS eligibility. If it qualifies, the TDS is deducted. TDS is also deducted on interest accrued (but not yet paid) at the end of the financial year viz. 31st March every year. The rate at which TDS is deducted varies according to the category of account holders.In case of resident individual and HUF, for payments upto Rs. 10 lacs, TDS arededucted at a rate of 10% plus education cess of 3% (thus total deduction is at the rate of 10.3%). However, for resident individual or HUF with interest payments equal to Rs.10 lacs or more, the TDS rate

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