|Author: Timmappa Kamat 09 Jul 2016 Member Level: Gold Points : 2 (Rs 2) Voting Score: 0|
Yes, the interests earned on any kind of bank accounts are taxable. If the total interest you earn from all your accounts - savings, FD, RD or any other type of accounts - exceeds Rs. 10000 per annum, banks will deduct the taxes as per the Income Tax rules.
The interest earned from your bank accounts is taxable and it comes under the heading Income from Other Sources. But since you have asked specifically about the TDS, let me assure you that the savings accounts have no TDS applicability. TDS comes in force in case of FD. Nevertheless, the amount of interest so earned is taxable if it exceeds Rs. 10000 in a financial year.
|Author: Partha Kansabanik 09 Jul 2016 Member Level: Diamond Points : 2 (Rs 2) Voting Score: 0|
The interest accrued on all types of bank accounts are taxable. So, the interest accrued on saving account deposits is also taxable. If the total interest accrued on all types of accounts exceeds Rs. 10000/-, the bank deducts the tax on the interest.
So far as TDS is concerned, I would like to intimate that TDS is not deducted from interest accrued on saving account deposits. As far as I know, TDS is deducted from Fixed Deposits (FDs).
|Author: Mahesh 09 Jul 2016 Member Level: Gold Points : 2 (Rs 2) Voting Score: 0|
Banks deduct the TDS on various investment done by the customer within the bank.
Your investment will have TDS deduction on the following:'
1. Savings account amount.
2. Term deposit interest.
3. Gold deposit.
4. Recurring deposit.
If the interest earned by each of the deposits reach above 10000 Rs. then TDS applies. And that TDS will be deducted from the interest paid. Also the TDS is often cut from the customers account on quarterly basis or the half annual basis depending on how the bank operates for TDS.
|Author: Sheo Shankar Jha 10 Jul 2016 Member Level: Gold Points : 3 (Rs 3) Voting Score: 0|
There is a provision of deduction of TDS in all the cases where the interest earned by an account holder exceeds beyond 10,000/-. TDS is applicable in all the deposits made in the Bank - be it Fixed Deposit, Recurring Deposit, Term Deposit or a Saving Bank account where the interest is beyond the permissible limit of 10,000/-.
In order to be exempted from the TDS being levied by the Banks, one has to submit either 15G or 15H whichever may be applicable to a particular account holder each year especially in the month of March - a month indicating the closing year for the account. Alternatively the time for submission of 15G or 15H is announced by the authorities of the Banks. Senior - citizens are entitled to get exemption from TDS if the prescribed form is filled and submitted in time in the Banks.