Short int. on fixed deposit paid by bank
anckoora
(Querist) 22 February 2012
This query is : Resolved
Dear Sir,
My employer had taken a FDR of 1 crore @9.5% int.p.a. ( compounded quarterly) for 1 year & 4 days. On FDR, Maturity Amount was mentioned as Rs.1,09,95,610/- and below it a note was written as " Interest component of the maturity amount will be subject to TDS, if applicable. The Maturity might vary to the extent of TDS deducted".
On maturity, Bank gave credit of 1,08,92,817/- and gave me statement of TDS deducted which was Rs.99,223/-. Now if I make total of these two, Gross Maturity Amount (before TDS deduction ) comes to Rs.1,09,92,040/- - which is short by Rs.3570/- as compared to what is gross amount written on FDR (1,09,95,610/-).
When I asked bank, they say that "this difference is due to our interest compounded quarterly and TDS deducted thereon quarterly and this TDS amount is not given credit of in principal amount. Thus we get short credit of interest every quarter and hence at the time of maturity this difference will come.ā€¯.
But my argument is that " since FDR is generated from software & software knows terms & conditions of this FDR, why maturity amount on FDR is coming higher by Rs.3570/- ?
In short I must get credit of 1,08,96,387/- ( maturity amt as mentioned on FDR 1,09,95,610/- less TDS as per bank statement of Rs.99,223/- ). Actually I got credit of 1,08,92,817/-, i.e., short by 3570/-.
Can I claim from Bank, this Rs.3570/- as they are bound to give maturity amount (after TDS deduction).? And how ?
Dear all experts, pl. study this case carefully & give me your valuable opinion on this querry.
anckoora
Guest
(Expert) 22 February 2012
It is not a legal problem.
You cannot claim refund of the statutory deduction of TDS from the Bank once it has been affected. You may ask for the prescribed certificate of deduction of TDS from the Bank. Account for the same in the books and also claim deduction of the Tax amount or refund, if Tax is not due, through the Tax Return to IT department.
Rajeev Kumar
(Expert) 22 February 2012
Agree with Dhingra Ji
Guest
(Expert) 22 February 2012
yes, its a statutory deduction ,procedure adopted by bank.TDS(tax deducted at source) is deducted on interest on bank FDs if interest amount exceeds Rs. 10000.It is deducted on the total interest amount.
Raj Kumar Makkad
(Expert) 22 February 2012
You have posted your query at wrong site. You are advised to visit www.caclubindia.com
RAJU O.F.,
(Expert) 10 March 2012
If you had an excemption from TDS, bank had to give the amount of maturity mentioned in the receipt. If you could not produce any evidence of any exemption from TDS bank is justified in deduction of TDS from interest every quarter and hence the compounded principal amount would be lesser, in every quarter and hence reduction in maturity value.
