POSTED BY September 5, 2013 10:13 am COMMENTS (6)ON
My estimated yearly term deposit interest for F/Y 13-14 is more than 10000/-. The interest credited for the quarter ended june 2013 is less than 10000. But the bank has still deducted tax on the interest credited on 30.06.2013. Is this right? I have read in rule 194A of IT act that TDS is to be deducted the day the interest “paid/accrued” exceeds 10000. Hence the bank should not have deducted tax on 30.06.2013. If the bank is correct, please provide some government rule that supports it.