TDS on Savings Bank Account Interest

POSTED BY Vyasang ON August 13, 2013 9:04 am COMMENTS (2)

How interest is calculated on the amount in Savings Bank Account? Is it calculated at the end of each month?

When banks deduct TDS from a customers Savings Bank Account?

2 replies on this article “TDS on Savings Bank Account Interest”

  1. Genoa says:

    1. You earn interest based on the closing balance you maintain every day

    See second paragraph ‘How is savings bank interest rates calculated?’

    2. There’s TDS applicable for Savings Bank Account. Also, interest upto Rs. 10000/- per year is tax free under Section 80TTA of the Income Tax Act

    1. Genoa says:

      In point 2, it should be no TDS applicable for Savings Bank Account

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