Personal Finance Blog India –

Thoughts On Tax Deducted At Source:

Tax deducted at source is not a new concept,I think everyone knows about it.TDS is in general discussed for its relation with interest received from bank deposits.

Regarding TDS both bank and customer have certain obligations.


  • Banking code clearly states that bank should inform the customer about TDS and advice them about provisions to avoid it i.e. about submission of 15G/15H form.
  • 15H form is for customer of age more than 65 yrs and 15G for others.
  • If interest[accrued/payable] is more than Rs.10,000/- in the particular branch in that financial year and form 15G/15H is not provided then its banks responsiblity to deduct the TDS.
  • Tax deducted is 10% of interest income if copy of pan card is provided and if not then it is 20%.
  • TDS deducted is on quarterly basis.
  • Its banks responsibility to issue a TDS certificate,Form 16A  and dispatch it to mailing address of the customer.As per new updates,a consolidated statement need to send at the address picked from pan-card database with NSDL.
  • If interest payable /accrued is in the taxable slab,then banks are free to deduct TDS,even though 15G/15H form is submitted.E.g If anyone’s interest income from particular branch is Rs 5 lakh then bank need to deduct TDS even though 15G/15H form is submitted as this income comes in a taxable slab.
  • In case of Non-banking finance companies, company deposits and NCDs held in physical form  interest income limit is Rs.5000/-.If annual interest exceeds this limit and 15G/15H form is not submitted then tax will be deducted at source.
  • There is no TDS applicable for interest paid on recurring deposit schemes .[though interest is taxable].


  • Its customers duty to submit form 15G/15H form if interest income is above Rs.10000/- and there is no tax liability.
  • Customer need to submit form each year at the start of financial year the month of April.

How to resolve Complaints about TDS:

If there are any issues or complaints then first customer needs to approach the official in the bank branch whose name is available in the branch.If complaint is not resolved then approach to zonal and nodal officer,still if complaint remained unsolved then approach Banking Ombudsman (Lokpal)  subject to completion of 30 days from complaint is lodged.

Category: Fixed Income

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