આ પેજ હાલમાં અંગ્રેજીમાં ઉપલબ્ધ છે.
How is FD interest taxed? When is TDS deducted?
Updated · CardKhoj Editorial Team
Short answer
Fixed deposit interest is fully taxable at your slab rate. Banks deduct 10% TDS when your interest from that bank exceeds ₹50,000 in a financial year (₹1 lakh for senior citizens), or 20% if PAN is not linked. TDS is only an advance — you must still declare the interest and pay any extra tax in your return.
TDS on FD interest
| Depositor | TDS threshold per bank per year | TDS rate |
|---|---|---|
| Below 60 | ₹50,000 | 10% (20% without PAN) |
| Senior citizen (60+) | ₹1,00,000 | 10% (20% without PAN) |
Avoiding unnecessary TDS
If your total income is below the taxable limit, submit Form 15G (below 60) or Form 15H (60+) to the bank at the start of each financial year. If TDS was already deducted, you can claim a refund when filing your return.
Tax-saving FDs
5-year tax-saver FDs qualify for the ₹1.5 lakh deduction under the old regime, but the interest is still taxable.
This answer is general information, not personalised financial or tax advice. Rules, rates and limits change — confirm with your bank, the RBI or a qualified adviser before making decisions.