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What is the taxable amount for fixed deposit in local bank?

I made Rs1 lakh on fixed deposit at 10.5% so that bank deduct TDS for 10% how they will deduct?

  • my question is i made fixed deposit for 1 lakh at the rate of 10.5 percent so that i am going to get an amount of Rs 10,500 so any way bank will deduct TDS for that amount for 10% my doubt is whether they will deduct by calculating the whole amount such as Rs110500 or for that interest earned Rs 10500 after TDS whether will give Rs 99450 or in that interest Rs 9450? please clarify my doubts

  • Answer:

    Bank will deduct the TDS if the interest paid or credited exceed Rs. 10,000/- in a financial year. They will deduct TDS on the interest amount not on principle.

Praveen Raj S at Yahoo! Answers Visit the source

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No not on whole amount that is principal amt + intr. it will deduct only on interest accured during the that finacial year. thank you

Chadrakant

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