TDS threshold on interest on bank/post office deposits increased

TDS THRESHHOLD INCREASED

While presenting interim Budget 2019-20 FM has raised TDS threshold on interest earned on bank/post office deposits.

In Tax Deduction at Source (TDS) threshold on interest earned on bank/post office deposits has been proposed to be raised from Rs.10,000 to Rs.40,000.

Shri Goyal said, “This will benefit small depositors and non-working spouses”.

Proposed Amendment in section 194A of Income Tax Act, 1961

In section 194A of the Income-tax Act, in sub-section (3), in clause (i), for the words “ten thousand” wherever they occur, the words “forty thousand” shall be substituted.