Which law applies. Section numbers on this page are those of the Income-tax Act, 2025, which took effect on 1 April 2026 and governs tax year 2026-27 onwards. For earlier tax years the corresponding provisions of the Income-tax Act, 1961 (Section 80TTB) continue to apply.
How much TDS is deducted on ₹60,000 annual FD interest income?
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Calculate TDS on FD interest under Section 194A. Understand the threshold, how to avoid TDS using Form 15G/H, and the actual tax you’ll owe at filing.
Why FD TDS Matters for Conservative Savers
Banks deduct 10% TDS on FD interest above ₹50,000 per financial year (₹1,00,000 for senior citizens). On ₹60,000 of annual FD interest, the bank deducts ₹6,000 and credits ₹54,000 to your account. The ₹6,000 shows up as TDS in your Form 26AS — adjustable against your overall tax liability at ITR filing.
If your total income falls below the basic exemption limit (₹4 lakh under the new regime, ₹2.5 lakh under the old regime for those below 60), the entire TDS is refundable. Submit Form 15G (under 60) or Form 15H (senior citizen) to the bank at the start of each financial year to prevent TDS deduction in the first place — but only if your total annual income is genuinely below the exemption threshold.
Three optimisations: (a) split FDs across multiple banks to stay below the ₹50,000 threshold per bank if income is otherwise low; (b) prefer tax-efficient alternatives like debt mutual funds, where indexation benefits used to apply (indexation is no longer available: it was removed for units bought from April 2023, and for older holdings on sales from 23 July 2024); (c) senior citizens get an additional ₹50,000 exemption under Section 153(2)(b) for interest from FDs and savings accounts.
TDS on FD Interest Calculator
Threshold: ₹50,000/year for non-senior citizens (₹1,00,000 for seniors)
How We Calculated This
Frequently Asked Questions
Is TDS deducted on entire ₹60,000 or only the excess?+
How do I avoid TDS on FD interest?+
What if I’ve already paid TDS but don’t owe tax?+
Is FD interest taxed separately or added to income?+
What’s the TDS threshold for bank FD vs company FD?+
The concept behind the number
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