Maximum Interest Not Subject To TDS ?

Will the TDS be deducted on the interest earned, if more than 10000, of a 4 year FD.sanjeevguptacp@..fmail.com

The interest paid by bank for F.D or Term Deposit is done u/s 194A of the I T Act which fixes limit of Rs 5000 in aggregate in a year. The wordings used in the section is

“(i) where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the person referred to in sub-section (1) to the account of, or to, the payee, does not exceed five thousand rupees”.

Please also note that in case of Bank or Co-operative bank or Public Company , the liability to deduct the tax will be branch wise. Therefore, in your case bank has to deduct the tax at source.

however if you submit 15G or 15H depending upon the case, bank may not deduct the tax.Read this for understanding the scheme of 15G or 15H .