Banks deduct TDS on interest paid on term deposits where the total interest paid exceeds the prescribed limit (at present Rs 10,000).

In such cases banks issue TDS Certificate in Form 16A on quarterly basis within fifteen days from the due date for furnishing the statement of tax deducted at source.

The due date for issue of TDS Certificate is given below:

Further, the banks are mandatorily required to issue quarterly TDS certificates (Form 16A) generated through TDS Reconciliation Analysis and Correction Enabling System (TRACES).

As per the Income Tax Act, if the interest paid on domestic term deposits exceeds Rs.10,000/- p.a., TDS will be deducted by10 per cent provided PAN is available. If PAN is not submitted, TDS will be deducted by 20% per cent.

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