TDS on Fixed Deposits?

According to section 194A of Income Tax Act, 1961 TDS is to be deducted if the interest paid by a bank on account of Fixed Deposit exceeds Rs 10,000. Bank itself should deduct and deposit the TDS with the government.

Rate of TDS-if PAN submitted – 10%

                 If Pan not submitted – 20 %

If the income of assesse does not fall into tax limit, he can submit a Declaration Form 15G/15H to bank stating that he doesn’t have any taxable income.

15H- individuals who is of the age of sixty-five years or more

15G-other persons

If a bank charges TDS on Fixed Deposit of an asessee not having any taxable income, he can claim refund while submitting his annual return.

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