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Frequently Asked Questions

When do I become liable for TDS?

You become liable for TDS* when the aggregate interest you earn for all deposits held in a particular customer ID is greater than Rs. 10,000/- in a financial year.

Disclaimers:
*Tax liability for TDS purpose is determined at branch level. Deposits held by minors are also subject to TDS. The credit for the TDS can be claimed by the person in whose hands the minor's income is included.

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When is TDS deducted?

TDS is deducted every time the Bank pays/re-invests interest during the financial year.

TDS is deducted every time the Bank pays/re-invests interest during the financial year. TDS is also deducted on unpaid interest accrued at the end of financial year viz. 31st March.

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Can TDS be recovered from principal of deposit in any case?

When interest amount is insufficient to recover TDS, the same is recovered from the principal of the deposit.

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Can the maturity amount of the deposit reduce due to TDS?

Yes, in case of reinvestment deposits, the interest reinvested is post TDS recovery.

Therefore, the maturity amount for re-investment deposits varies to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.

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Does any change or enhancement in my deposit portfolio affect TDS liability?

Yes. If the change or enhancement in your deposit portfolio earns a cumulative interest** along with that of the earlier portfolio greater than Rs. 10,000/- you will be liable for TDS on your current portfolio.

Disclaimers:
**If interest on the current portfolio is not sufficient to cover TDS, it will be recovered from the principal.

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