Prakash maintained a recurring deposit by paying ₹20,000 per month in a bank. The interest accrued and credited during 2018-19 on such deposit is ₹15,000. The amount of TDS required to be deducted by the bank would be :

CS Executive · Tax Laws and Practice · PYQS · June 2019
Prakash maintained a recurring deposit by paying ₹20,000 per month in a bank. The interest accrued and credited during 2018-19 on such deposit is ₹15,000. The amount of TDS required to be deducted by the bank would be :
(A) NIL
(B) ₹1,500 @ 10%
(C) ₹3,000 @ 20%
(D) ₹500 @ 10% over ₹10,000

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Income Tax Act, 1961

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