What Is TDS?
FAQs about TDS Interest Calculation
If paid by a bank, the threshold for interest payment without TDS is Rs 10,000. For other entities, the threshold is Rs 5,000. If the payment exceeds the threshold, TDS is deducted on the entire amount.
The TDS limit for interest on Fixed Deposits (FD) is Rs 10,000. If the interest earned on an FD exceeds this threshold, TDS is deducted on the entire amount (not just on the amount exceeding 10,000)
The rate of interest for late payment of TDS is 1.5% per month or 1% per month, depending on whether you have deducted the TDS from the assesses or not.
Yes, banks are required to cut TDS on interest if the interest amount exceeds Rs 10,000. The TDS amount is deducted by the bank before crediting the interest to the account holder.
Last Updated on August 22nd, 2023 at 3:20 pm
Create a free account to get access and start creating something amazing right now!