Tds on fd interest? Its affect if we also earned interest on sa?

[NikhilG]

Hello,
I understand that bank deducts 10 percent tds on fd interest if its more than 40k per year. But does that mean, if I also have my sa with same bank and already accumulated more than 40 k in interest that year I'm not eligible to have that 40k waiver limit?

 

[Anindya98]

Hello,
I understand that bank deducts 10 percent tds on fd interest if its more than 40k per year. But does that mean, if I also have my sa with same bank and already accumulated more than 40 k in interest that year I'm not eligible to have that 40k waiver limit?

For FD, it is 40K
SB overall 10K a year, after that 10% on the full amount.
AFAIK, in both cases, all the FD & SB are included, not bank-specific.

 

[NikhilG]

For FD, it is 40K
SB overall 10K a year, after that 10% on the full amount.
AFAIK, in both cases, all the FD & SB are included, not bank-specific.

So someone who already earned say 1 lac in this fy on savings account interest won't be eligible for 40k waiver if he opens fd?
Did you understand my question?

 

[Anindya98]

So someone who already earned say 1 lac in this fy on savings account interest won't be eligible for 40k waiver if he opens fd?

Yes, you are eligible for the 40K FD waiver.

Did you understand my question?

Yes, both are separate, and you are eligible for both. So for X Bank you will get 10K(SB) + 40K (FD)