Forum Income-Tax TDS on fd interest

TDS on fd interest
Guest
watch_later 27/08/18
Hi,
 
Please help me in understanding the TDS deduction on FD's
 
For example: (Compounded Quarterly)
 
200000@9% for 12 months. Interest earned 18617.
 
TDS= 18617x10%= 1862. Principal amount is now 200000+18617-1862= 216755
 
This case is understood, this is how the calculation for interest on FD's is supposed to be. But what most banks like SBI etc. are doing is that the maturity amount will be a little less than our calculation(Difference ranging from 200-800) and if we ask them they say that its the TDS deducted. Can someone please share the correct method/excel file for TDS deduction on FD's?
 
Thanks
3 Responses | Latest response: 24/05/19 | Sort by Likes(thumb_up) Recent | Income-Tax Reply
Guest
watch_later 29/08/18
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Any help friends?

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Guest
watch_later 21/02/19
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Any help friends?

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Anon
watch_later 24/05/19
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You have compounded complete interest amount, instead compound only interest amount without including TDS amount. As and when interest is accrued TDS is deducted and only remaining interest is to be added to principal amount. Further you should also read terms and conditions on which amount interest is paid and for which month interest is calculated. It is on monthly, daily or quarterly basis.

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