« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  Carrier Aircon wins excise case... Black to white: evaders' ways won't wash with I-T anymore... » Postal deposits may lose TDS exemption July, 10th 2006 A fixed or recurring deposit with the post office could soon require you to pay tax on the interest earned.    The income tax department is mulling withdrawing the tax-deducted-at-source exemption on instruments such as fixed, recurring deposits and the national savings certificate offered by the department of posts.    The finance ministry had last month clarified that tax deducted at source (TDS) is applicable on the senior citizens savings scheme, operated by the department of posts.    The issue of withdrawal of the exemption was raised at the meeting of chief commissioners and directors-general of income tax earlier this week.    It was pointed out by some zones that several instruments offered by the department of posts did not pay TDS. The matter is now under examination, a finance ministry official said.    Increasing TDS collection is a focus area for the tax department since it accounts for 45 per cent of direct tax collections. Officials said the chief commissioners meeting noted that several government departments did not pay TDS because they were unaware.    At present, several instruments offered by the postal department such as fixed deposits, recurring deposits, investment deposits and national savings certificates are notified for exemption from TDS.    There is a view that if TDS is applicable on the senior citizens savings scheme, which targets mainly retired persons, then it should be applicable on other investment instruments offered by the department of posts, an official said.    The finance ministry had only last month said that interest accruing on deposits held under the senior citizens savings scheme, 2004, was taxable as per the provisions of the Income Tax Act, 1961 and was liable for tax deduction at source according to the provisions of section 194A of the Act.    The ministry had said that citizens investing in the senior citizens savings scheme would have to furnish a declaration in Form 15H or Form 15G to the bank / post office, in order to avoid deduction of tax.