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I faced a case : One person "P" registered for a plot amounted to almost Rs 400000 to a real state company, XYZ. But XYZ is unable to provide the plot even after 2 years. So they are returning back the money along with the interest. Interst amount is almost Rs 66000. XYZ company is deducting the TDS from the interest. Are this company is doing right by deducting the TDS from the interest income? The profile of person Case 1 : P is a student and don't have any income. Case 2 : P is earning more than 10000 pm if interest income is included.
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