When is TDS deducted on FD interest?

Banks deduct TDS once FD interest exceeds ₹40,000 a year (₹50,000 for senior citizens). Rate is 10% with PAN updated.

How do I avoid TDS on FD if I am below taxable income?

Submit Form 15G (or 15H for seniors) to the bank if your total income is below the taxable limit — then the bank should not deduct TDS.

Banking & savings

Quick answer

Tax the bank deducts on your FD interest once it crosses a yearly threshold.

Banks deduct TDS on FD interest once it exceeds ₹40,000 a year (₹50,000 for senior citizens).

It is deducted at 10% if your PAN is updated, and higher if not. You still owe tax at your full slab if applicable.

If your total income is below the taxable limit, submit Form 15G or 15H to stop the bank from deducting TDS.

For example

Earn ₹60,000 FD interest in a year and the bank cuts ₹6,000 as TDS, which you adjust against your final tax in your ITR.

Gen Z practical guide

When is TDS deducted on FD interest?: Banks deduct TDS once FD interest exceeds ₹40,000 a year (₹50,000 for senior citizens). Rate is 10% with PAN updated.
How do I avoid TDS on FD if I am below taxable income?: Submit Form 15G (or 15H for seniors) to the bank if your total income is below the taxable limit — then the bank should not deduct TDS.