Finance, Forex and Investments

TDS on interest earned on deposits in Indian banks?

Hi, I understand that the RBI has raised the exemption limit for TDS provision on interest earned on fixed deposits in Indian banks from Rs. 5000 to Rs. 10000. If I understand it correctly, if the interest earned by me on deposits in a bank exceeds Rs. 10000; then tax will be deducted (unless I fill out the required form). My question: 1) Is my understanding correct? 2) Which form to fill out? 3) Does the interest just have to be on fixed deposits (or does interest earned on savings account also count towards the limit of Rs.10000) e.g: If I earn Rs.8000 on interest on FD's and Rs.3000 on interest in my savings account (total interest = Rs.11000), does TDS apply? Thanks

Public Comments

1. 1) Is my understanding correct? Now the TDS on deposits is for Rs10,000 and more @10.3% 2) Which form to fill out?: Form 15G. Senior Citizens has to fill Form 15H 3) Actually it should apply for all interest paid in that bank's branch. If the bank is giving a ID to each customer like in ICICI Bank, then the bank will calculate interest on each ID. If the S.B A/c ID and FD ID are same, then when the interest is calculated on ID basis, then all the deposits and S.B a/cs fall in one group. In your case if the ID for S.B and FD are same, then it attracts TDS. If the branch is not calculating on ID basis or if the ID for S.B and FD are different, then no TDS. Hope you understand it well. (ID= Identification Number)
2. india.gov.in, The National Portal of India, is good for inquiring all these things. Have a look at this link: http://www.india.gov.in/citizen/taxes.php