TDS on Savings Bank Account Interest

POSTED BY Vyasang ON August 13, 2013 9:04 am COMMENTS (2)

How interest is calculated on the amount in Savings Bank Account? Is it calculated at the end of each month?

When banks deduct TDS from a customers Savings Bank Account?

2 replies on this article “TDS on Savings Bank Account Interest”

  1. Genoa says:
    August 13, 2013 at 2:27 pm

    1. You earn interest based on the closing balance you maintain every day

    See second paragraph ‘How is savings bank interest rates calculated?’
    http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/all-about-savings-bank-interest-rates/articleshow/21775067.cms

    2. There’s TDS applicable for Savings Bank Account. Also, interest upto Rs. 10000/- per year is tax free under Section 80TTA of the Income Tax Act
    http://www.taxmann.com/taxmannflashes/BUD12-70g.htm

    Reply
    1. Genoa says:
      August 13, 2013 at 2:29 pm

      In point 2, it should be no TDS applicable for Savings Bank Account

      Reply

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