In addition, Section 194P was recently included to oblige banks to withhold tax from elderly citizens (over 75) who receive a pension and interest income from the bank. Example of TDS Check this example on how TDS work: Nature of Payment: Professional Fees Specified Rate: 10% If Mr. A ...
Example of TDS on Fixed Deposit If you open a Bank Fixed Deposit and you earn an interest income of Rs 60,000 after one year. The bank will deduct TDS at the rate of 10% i.e., Rs 6,000 (10% of Rs 60,000) and deposits with the Income Tax Department. The bank issues you a ...
For example, an employer deducts TDS on the income of his employee every month and gives Form 16 to show TDS deducted. One may have to deduct TDS when one buys property or pays rent above Rs 50,000The employer/bank/financial institution will deduct TDS as per TDS rate. To avoid TDS,...
Interest on saving bank account document is bank account statement.No TDS is deducted for interest on saving bank account. Interest on Fixed Deposit: Document isForm 16Awhich shows TDS cut by bank at the rate of 10% if interest on the Fixed Deposit in the financial year is more than Rs 1...