Tax on FD

[Shubham]

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.

 

[wcgxlr8]

Assuming that all banks in consideration are part of CBS - I don't think that's how it works. From what I have seen, there would be a 10% TDS for each FD interest if the cumulative interest exceeds 40K per annum. If it's lower than 40k, then you have to add it to your overall income and consider it as taxable income (based on slabs).

 

[Sayan_D]

Bank wise it is different, there is pan included but it doesn’t take all the banks that is why if you submit 15G/H you have to give it to all the banks not only one is enough

 

[zacobite]

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.

tds is per bank per PAN.. final tax liability will be on overall profit... not at bank or fd level.. tax doesn't chg if applicable..