New TDS rules on fixed deposit interest (Budget 2015)
Budget 2015 has made TDS rules on fixed deposit interest more stringent.
Till now, TDS was deducted by bank or post office when the interest is more than Rs 10000.There was a loophole as the limit of Rs 10000 was calculated with reference each of the branch and not all the branches together. So many taxpayers were using this option to create FD in different branches of same bank, so that the interest per branch doesnot exceed Rs 10000 and thereby no TDS is deducted.
Now, in Budget 2015, this loophole is plugged. The budget proposes to make this limit for tax deduction applicable in respect of deposits with ALL the branches taken together in case the bank or the Company has core banking solution.
So now you cannot escape the TDS even if you open your bank fixed deposits with different ...