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Criteria for tds on bank deposit: on int. provided during a f.y. or on interest paid on maturity?

(Querist) 30 September 2015 This query is : Resolved 
Sir, Mr. XYZ is having a Fixed Deposit of Rs.1, 06,404 = 00 with a Bank. Period of Deposit is 15 months starting from November 2014 up to mid February 2016. Rate of Interest is 9.50 % p.a.
Details of interest earned on the above Fixed Deposit:
Interest between Nov. 2014 and end of March 2015: Rs. 5,054 = 00 (F.Y. 2014-15)
Interest between Apr. 2015 and end of Feb. 2016: Rs. 8,193 = 00 (F.Y. 2015-16)
Total amount of interest payable on maturity: Rs. 13,247 = 00 (F.Y. 2015-16)
My question is:
(1) Whether above Bank Deposit attracts TDS provisions for the F.Y. 2014-15 and F.Y. 2015-16 or not ?.
(2) Whether Bank can deduct TDS on the interest amount payable on maturity, saying, income by way of interest is more than Rs. 10,000 = 00 for the F.Y. 2015-16 ?.
Pundalika A. Bhat.
R.K Nanda (Expert) 03 October 2015
consult tax lawyer.
Adv D P Jindal (Expert) 07 October 2015
I am a retired Bank Officer from State Bank of India. As per Income Tax Law, if the interest amount is 10,000/- or more in a financial year, TDS is deducted on the whole amount of interest @ 10%, if the PAN number is provided, if PAN number is not provided in the Bank A/c then the TDS will be deducted @ 20% on the amount of annual interest earned, whether paid or not; and not at the time of maturity. If there is any doubt, you may contact me at advdpjindal@gmail.com


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