Legal Question in Banking Law in India

Case History

� � � � � � � � � � ���FD A/C(Cumulative Interest Mode)

ORIGINAL INVESTED AMOUNT Rs 100000.MATURITY AMOUNT Rs 152279

STARTING DATE���25/05/2009 MATURITY DATE 25/05 2014

� MATURED AMOUNT BECAME Rs 146287 ON 25/05/2014 TDS OF Rs 5992 WAS EFFECTED

� � � � � � ���AS PER BANK RECORD Interest Accrued and Corresponding TDS� effected as per Section 194A of IT Act

Actually Interst Accrued is not paid to Customer yearly,but customer must show Interest Accrued and corresponding TDS while filing IT Returns

Financial Year� � � � � � � � � � � � Interest Accrued� � � � � � � � � � ���TDS(10%Norms)

2009-10� � � � � � � � � � � � � � � � � � � Rs 7401.52� � � � � � � � � � � � � ���Rs 741

2010-11� � � � � � � � � � � � � � � � � � � Rs 9369� � � � � � � � � � � � � � � � ���Rs 937

2011-12� � � � � � � � � � � � � � � � � ���Rs 10130� � � � � � � � � � � � � � � ���Rs 1013

2012-13� � � � � � � � � � � � � � � � � ���Rs 10894� � � � � � � � � � � � � � � � � Rs 1090

2013-14� � � � � � � � � � � � � � � � � ���Rs 11774� � � � � � � � � � � � � � � � ���Rs 1175

Total Interest up to 31/03/2014=Rs 49569 (A)� � � � � � ���Total TDS up to 31/03/2014=Rs 4956(B)

Year 2013-14 means up to 31/03/2014.However FD A/C� matured on 25/05/14 .Original Invested Amount was Rs 100000.Maturity Amount was Rs 152279.Total interest of Rs 52279(C) was paid for the entire period

Therefore from 01/04/2014 up to 25/05/2014(date of maturity) Interest paid=(C) minus (A)=RS 52279-Rs49569=Rs 2710,Corresponding TDS=Rs 271(D)

Therefore Total Interest paid =(A)+(C)=Rs 49569+Rs 2710=Rs 52279,10% of Rs 52279=Rs 5228

Therefore Total TDS =(B)+(D)=Rs 4956+Rs 271=Rs 5227

But MATURED AMOUNT BECAME Rs 146287 ON 25/05/2014 TDS Rs 152279-Rs 146287= Rs 5992 was effected instead of correct value� Rs 5228.So EXCESS TDS CHARGED =Rs 5992-Rs 5228=Rs 764

ACTUALLY I MIGHT HAVE AN MISCONCEPTION THAT WHILE BANK HAS EFFECTED TDS ON YEARLY BASIS AND AGAIN DEDUCTED Rs 5992 ON MATURITY ,IT IS A CASE OF CHARGING DOUBLE TDS .

BUT DEFINITELY IT A CASE OF EXCESS TDS CHARGING BUY AN AMOUNT OF Rs 764 AS DESCRIBED ABOVE

PLEASE OPINE .With thank

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