TDS (Tax Deduction at Source) will be applicable when the total interest payable or reinvested in Recurring Deposits and/or Fixed Deposits per customer, across all branches, exceeds Rs 40,000 in a financial year. In case of senior citizen, TDS will be deducted when interest payable or reinvested on Recurring Deposits and Fixed Deposits per customer, across all branches, exceeds Rs 50,000 in a financial year. A TDS Certificate will be mailed to you after end of every quarter during the financial year, providing the details of TDS deducted.
TYPE OF CUSTOMERS | TAX RATE | SURCHARGE | EDUCATION CESS | TOTAL TAXES |
---|---|---|---|---|
Resident Individual & HUF | 10% | ---- | ---- | 10% |
Corporate Entity | 10% | ---- | ---- | 10% |
Firms | 10% | ---- | ---- | 10% |
Co-operative Societies & Local Authority | 10% | ---- | ---- | 10% |
TOTAL INTEREST PAID TO NRO DEPOSITS AND SB ACCOUNTS IN A FINANCIAL YEAR | TAX RATE | SURCHARGE | EDUCATION CESS | TOTAL TAXES |
---|---|---|---|---|
Less than or equal to Rs 50 lakh | 30% | ---- | 4% | 31.20% |
Greater than Rs 50 lakh but up to Rs 1 crore | 30% | 10% | 4% | 34.32% |
Greater than Rs 1 crore | 30% | 15% | 4% | 35.88% |
A fresh Form 15G/15H is required to be submitted for each financial year. Form 15G/15H should be submitted at the time of creation of FD or beginning of financial year whichever is earlier. Further, fresh Form 15G/H needs to be submitted for all subsequent deposit(s) booked during the financial year. TDS is recovered on the total of interest compounded, interest paid and interest accrued at the end of financial year i.e. 31st March on the Fixed Deposit(s)/Recurring Deposit(s).