ReferIndia News Can your bank cut TDS on interest income? Income Tax Department clarifies Income

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Can your bank cut TDS on interest income? Income Tax Department clarifies Income

Published on: March 30, 2026, 2:12 p.m. | Source: The Economic Times

The Income Tax Department has clarified eligible banks for TDS on interest under the new Income-tax Act, 2025, effective April 1, 2026. The definition of 'banking company' has been refined, impacting TDS applicability on interest below prescribed thresholds for general and senior citizens.

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