Jayant Sinha, Minister of
State for Finance has clarified that there will be no TDS on interest earned
through post office recurring deposits.
Jayant
Sinha, Minister of State for Finance has clarified that there will be no TDS on
interest earned through recurring deposits or RDs of post offices.
Earlier,
Union Budget 2015 had proposed to put RDs under the ambit of TDS. A TDS of 10%
has been proposed to be deducted from interest earned of over Rs.10,000 through
RDs. However, in order to promote small savings, the government has kept post
office RDs away from the ambit of TDS.
In
response to the question asked in Lok Sabha, Jayant Sinha, Minister of State in
Ministry of Finance said, “The Government proposes to promote the recurring
deposits scheme. It takes various measures on
continuous basis to
promote and popularize
all small savings
scheme including post office
recurring deposit scheme through electronic
and print media
as well as
holding seminars, meetings and providing training
to the various
agencies involved in
mobilizing deposits under these
schemes.”
Meanwhile,
bank RDs will attract TDS on interest earned of over Rs.10,000.