Banking & savings
TDS on FD
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.