Earlier

If Interest income was more than 10000,then 10% tds was deducted by banks on FD

Rules were same for all(whether senior citzens or not)

 

Now

If Interest income was more than 10000,then 10% tds was deducted by banks on FD

However for Senior Citizens

If Interest income was more than 50000,then 10% tds was deducted by banks on FD

 

Example
FY 2017-18

PARTICULARS EARLIER
FD MADE OF 100000 200000 10000000
Interest Earned 8% 8% 8%
Interest Income 8000 16000 800000
TDS 0 1600 80000
Net Interest Income 8000 14400 720000

 

FY 2018-19

PARTICULARS NOW
FD MADE OF 100000 200000 10000000
Interest Earned 8% 8% 8%
Interest Income 8000 16000 800000
TDS 0 0 80000
Net Interest Income 8000 16000 720000

 

  1. Tax Practical
  2. Budget Amendments - Changes in 2017-18
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .