Why do Banks deduct TDS on FD Interest?

Share This Thread
  1. shivaji patil

    shivaji patil New Member

    Why bank deduct TDS on FD interest?
  2. nafeesa

    nafeesa Member

    You may escape from income tax as you are a small assesse.
    so income tax department has introduced this concept of TDS.
  3. ileana

    ileana New Member

    A normal fixed deposit is not eligible for tax deduction and neither is the interest on it. In fact the interest earned in a tax saving fixed deposit is also taxable since it is considered a source of income. The tax deducted will however be on the interest that exceeds Rs 10,000 in a year. If you have provided your PAN number then the tax will be about 10% but if you have not, then it will be about 20%. If you are not liable to pay taxes then you can furnish forms 15G & 15H to the bank and the TDS will not be deducted.
    For more information you can check here: TDS on FD
Draft saved Draft deleted
Similar Threads Forum Date
Erroneously deducts 10% TDS on property sale ? Income Tax Sunday at 7:51 PM
Whether deduction u/s 54 is available for capital gains arising from sale of more than one house, ho Income Tax Nov 17, 2017
Deduction of Home Loan for under construction property Income Tax Nov 14, 2017
Deduction under Section 80 D Income Tax Nov 14, 2017
Medical expenses tax deductions Income Tax Nov 6, 2017