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What is TDS on Fixed Deposit?

Tax deducted at source (TDS) on FD can range from 0% to 30%, depending on your income tax bracket.

If your interest earned is more than Rs.10,000 in a year, the TDS deducted is:

  • 10% if your PAN details are provided
  • 20% if your PAN details are not provided

If your total income is below the minimum slab, you can claim a refund of the TDS deducted

To avoid TDS deduction:

  • Submit Form 15G to your NBFC or bank, if you fall under the minimum tax slab.
  • Submit Form 15H if you’re a senior citizen.

If you fall in the higher tax bracket (20% or 30%), you need to pay extra tax over and above the TDS deducted by your NBFC or bank.

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