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Whether variable deposit schemes are liable to deduction of tax at source from interest ?

QuestionsCategory: Income TaxWhether variable deposit schemes are liable to deduction of tax at source from interest ?
SaraRao Staff asked 6 months ago

Whether variable deposit schemes are liable to deduction of tax at source from interest ?

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1 Answers
VedikaJoshi Staff answered 6 months ago

Under section 194A, tax is to be deducted from interest from banks on time deposits. As variable deposits are in the nature of time deposits, tax is deductible at source from interest on such deposits.

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