Interest Earned and Deduction of Tax:

Financial institutions providing Interest on various products. Few example depicted below for understanding:

• On savings account on half yearly basis
• On short term deposit account on half yearly basis
• On fixed deposit accounts on maturity basis etc.
  

As per regulation of National Board of Revenue (NBR) financial institutions deducting Tax at source on interest at the rate of 10 percent and depositing the Tax money to the appropriate authority through a chalan within seven days of next month. Therefore, depositor may request to provide them a certificate mentioning the amount earned as interest and the amount deducted as Tax for record purpose and also for reporting to Tax Authority as well.