How bank deduct TDS? What happen of TDS already deposit if we break FD before maturity ?

I have few doubts on TDS which I framed as following scenario. I searched over net but didn't find any answer.

Following is test scenario.

  1. Principal amount - Rs 1 Lakh
  2. FD interest rate - 12% ( so that calculation will be easier )

So I l will get interest amount = Rs 12000 But as 12K > 10K so TDS 0f 10% will be deducted i.e. 1200.

Following is my question

  1. How bank deposit TDS. Can you explain with above example if bank deduct TDS quarter. ( Q1 how mush they submit and so on for Q2,Q3,Q4).
  2. bank deduct TDS every quarter. So if I break my FD after 6 months. How can I get back TDS which bank submitted in first quarter. ( because my interest will not go above 10K)

asked Jul 14 '15 at 23:38 by suren 41141625

  1. Bank deduct TDS on quarterly basis. So if bank sees that on all your accounts combined with bank, if interest outgo is going to be more than 10,000 in current year, it start deducting TDS. So in your case bank would deduct 300 Rs in first Quarter and similarly going forward.
  2. If bank deducted TDS, you can only get back amount as refund after filing income tax return.

answered Jul 24 '15 at 14:42 by Pankaj Batra 5.2k320


Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text]( "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported



Asked: Jul 14 '15 at 23:38

Seen: 2,077 times

Last updated: Jul 24 '15 at 14:42