Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
When the bank deducts
Banks deduct 10% TDS on FD interest once it crosses ₹40,000 in a financial year (₹50,000 for senior citizens), counted per bank. Without your PAN, the rate jumps to 20%. This TDS is just an advance — it is credited against your final tax when you file. Confirm the current thresholds per the Finance Act.
Stopping it with 15G/15H
If your total income is below the taxable limit, you can ask the bank not to deduct by submitting Form 15G (under 60) or Form 15H (senior citizens) at the start of the year. This avoids locking up a refund. But do not submit it if your income is taxable — that is a false declaration.
A worked example
Example: you earn ₹1 lakh of FD interest; the bank deducts ₹10,000 TDS. If your slab tax on it is ₹5,000, you reclaim ₹5,000 by filing. A retiree with total income under the limit submits Form 15H and avoids the deduction entirely. Remember the threshold is per bank, so spreading FDs can keep each below it. Our team can handle the filing.