TDS cut at 20% on Fixed Deposits – Why ?

POSTED BY maha1986 ON January 31, 2014 3:07 pm COMMENTS (3)

My bank has deducted an amount of tax from my fixed deposits, that is absurd if the TDS rate is 10% but possible if rate is 20%. If my gross income and interests from FDs are added the total taxable amount overcomes 5 lakh band.

My question is-

Does any bank deduct TDS @20% assuming total taxable income crosses 5 lakhs? Second question is the amount deducted is not shown in 26AS. why?

3 replies on this article “TDS cut at 20% on Fixed Deposits – Why ?”

  1. ashalanshu says:
    January 31, 2014 at 5:24 pm

    Dear Maha, if your PAN is not with bank, the applicable TDs rate ‘ll be 20%.

    Thanks

    Ashal

    Reply
  2. Sibin says:
    January 31, 2014 at 5:19 pm

    PAN card to be submitted, else banks are suppose to deduct 20%.

    Reply
  3. tonsi30 says:
    January 31, 2014 at 3:57 pm

    Have you submitted your PAN details to the bank? Otherwise they cut 20%.

    Reply

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