I found this article, which is 3 years old ***********.icicibank.com/blogs/fixed-deposits/tax-deduction-on-fixed-deposit
I want to know if the example given below still holds true, or if a 10% TDS will be deducted if the total interest from all the banks exceeds Rs 40,000.
Example:
Mr. Anand has three FD accounts with different lenders. Bank A earns him Rs 50,000 per annum, Bank B earns him Rs 30,000 per annum, and Bank C earns him Rs 20,000 per annum.
Based on the TDS regulations, Mr. Anand is liable to pay a 10% TDS since his total interest earnings exceed Rs 40,000 in a year. However, the tax department does not consider the total interest earnings from all banks combined. TDS is only applicable to the interest amount that exceeds Rs 40,000 from Bank A. For the other two accounts, Mr. Anand will receive a Fixed Deposit income tax exemption.
I want to know if the example given below still holds true, or if a 10% TDS will be deducted if the total interest from all the banks exceeds Rs 40,000.
Example:
Mr. Anand has three FD accounts with different lenders. Bank A earns him Rs 50,000 per annum, Bank B earns him Rs 30,000 per annum, and Bank C earns him Rs 20,000 per annum.
Based on the TDS regulations, Mr. Anand is liable to pay a 10% TDS since his total interest earnings exceed Rs 40,000 in a year. However, the tax department does not consider the total interest earnings from all banks combined. TDS is only applicable to the interest amount that exceeds Rs 40,000 from Bank A. For the other two accounts, Mr. Anand will receive a Fixed Deposit income tax exemption.