Maturity value on the FDR in the case of a depositor
Ref: Interest amount calculation and TDS deduction for a cumulative fixed deposit - Appellant: RBI just referred to a master circular which is not of any help - Appellant: six bank officers came up with six different conclusions - CIC: provide information http://www.rtifoundationofindia.com/interest-amount-calculation-and-tds-deduction-cumu
Comment: I am a retired bank manager. I am trying to explain Ms Uma's case by giving an example. The maturity value stated in this case on the FDR is a value on maturity subject to deduction of TDS. Since TDS is being deducted, naturally the actual MV will be less on maturity. This is simply because, in case of reinvestment the quarterly interest is not compounded to the full extent because the TDS is deducted from that interest, so the remainder plus the principal earns the interest for the further quarter and the cycle goes on giving you the less mv than stated on the receipt.
Example: One lac for 12 months @10% MV without TDS will be Rs.110381.29 while mv with TDS will be Rs.109276.26.
The TDS will be 1st Q Rs257.50,Q2 263.27,Q3 269.18,&Q4 275.21 .I think this explain everything related to the above case.
Name: N T Bholankar
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