TDS Deducted from Fixed Deposit for interest less than Rs 10,000 – Why ?

POSTED BY invQ ON November 29, 2013 7:27 am COMMENTS (5)

Hello,

I had several FDs in my savings bank to foreclose my personal loan which generated interest of 9037.44 (from all FDs in the FY) and I see bank had deducted TDS of 904 from one of the FD. As far I know TDS on FD should be 10% only when total interest exceeded 10,000. But why they deducted TDS from me while it was less?

5 replies on this article “TDS Deducted from Fixed Deposit for interest less than Rs 10,000 – Why ?”

  1. ashalanshu says:

    Dear Invq, for the given situation, only bank people can answer why the TDs has been applied when total interest pay out is less than 10K. What I understood, FDs were supposed to run for full term, hence full FY’s interest may be considered by bank’s sofrware as your possible income in the FY.

    thanks

    Ashal

  2. ashalanshu says:

    Dear InvQ, 904 Rs. deduction means TDS has been applied on full amount. Whereas you are telling that only 1 FD interest has been deeducted. How can we answer on such incomplete info?

    Thanks

    Ashal

    1. invQ says:

      Yes I agree with you Ashalanshu the amount was 10% of total interest that I earned. But the bank statement shows the amount was deducted from one of the FD’s interest . So I said the same.

  3. ashalanshu says:

    Dear InvQ, had you asked it in bank?

    Thanks

    Ashal

    1. invQ says:

      I will ask them this week end, but just wanted to know is that possible and solutions from here so that when I go to bank tomorrow I can go with all my questions and possible solutions/resolutions as well.

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