I am a college teacher. My college operates Statutary Provident Fund in Public Sector Bank for the last twenty years. Every month bank sweep transfer the Employer- Employee contribution in to Fixed deposit on which we receive interest. Now bank Authority says they will deduct TDS on this interest income as this income is interest income from saving account in the name of Emloyer and employee. What to do? What is the remedy
Dr.Rajesh-Bank is correct as for bank it is a typical deposit, no matter for what purpose you did that. But this account being in the name of employer (I think so), TDS will be applicable to employer. Also, I don’t think why your employer creating deposit than making it to transfer to EPFO.