Just wanted to write about something that I came to realize this month.
As per current rules applicable till March 31, 2021… TDS on FD is charged at 7.5% for customers with PAN Card submitted with the bank. TDS increases to 20% for customers who have not submitted their PAN Card.
Further mode, TDS is only charged by the bank if your interest in the financial year goes above Rs. 50,000.
But the TDS is charged for the amount till Rs. 50,000 as well. So, your interest installment that crosses that limit would have TDS charged on the entire amount received in that financial year in that installment. So, you might get confused on the amount of TDS levied on those funds.
As per current rules applicable till March 31, 2021… TDS on FD is charged at 7.5% for customers with PAN Card submitted with the bank. TDS increases to 20% for customers who have not submitted their PAN Card.
Further mode, TDS is only charged by the bank if your interest in the financial year goes above Rs. 50,000.
But the TDS is charged for the amount till Rs. 50,000 as well. So, your interest installment that crosses that limit would have TDS charged on the entire amount received in that financial year in that installment. So, you might get confused on the amount of TDS levied on those funds.
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