I have a salary account in Citi Bank,

I used keep my savings in citi bank Multi deposit scheme.

I'm doing this for past one and half years, But I came to know that there is TDS on Deposits if the Interest earned on FD's cross 10,000 INR.
I used to save small amounts of 10K for every 3 months lock-in for 90 days or 180 days now it became 2.2L + again I deposited another 30K and from April'16 I earned a Interest of 7,330 INR. But these Deposits or closed.
The Maturity date of 2.2L and 30K is March 2017 and total interest for the year 2016-2017 will exceed 10k, so TDS is calculated for all the interest earned for all the deposits together or Individually?
Pls give this Info

1 Answer 1


There are 2 things.

First the interest on FD (even Rs1)as well as savings account is taxable. This needs to be added to your tax bracket and taxes paid accordingly. There is a relief upto Rs 10000 interest on savings account.

Secondly the TDS is deducted by bank at 10% if the interest in a year is more than Rs 10000. The maturity date does not matter. Bank should give you interest statement and tax deducted at source. You have to balance tax as applicable if you are in higher tax bracket.

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