Do companies club interest on different FDs in calculation of interest for TDS purposes?
Yes, it is mandatory for the companies to club the interest income on all the accounts of the account holder and deduct TDS if interest is more than Rs. 5000. The Income Tax is deducted at source in accordance with the Section 194-A of the Income Tax Act except where appropriate certificates/Forms ie. Form 15H/15G is submitted at least one month before the due date of interest.
