TDS on Interest in Bank Deposits

TDS on Interest in Bank Deposits

1.Interest earned on bank deposits is subject to tax deducted at source (TDS) if the total interest amount in a financial year exceeds Rs 10,000.
2. Interest earned on term deposits is subject to TDS. However, interest earned on savings account balances is not subjected to TDS.
3. Even if a customer has multiple deposits, the interest earned will be aggregated and subjected to TDS if the threshold level is crossed.
4. TDS is applicable on the entire interest income if it is more than Rs 10,000 in a financial year, and not on the extent to which the interest income exceeds Rs 10,000.