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.
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.