FD Tax Calculator
Estimate interest earned on your FD and TDS applicable. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.
Calculate FD Tax / TDS
TDS on FD interest
Banks deduct TDS when interest credited in a financial year exceeds the threshold. Your total tax depends on income slab.
FAQs
Key Terms
- Maturity amount
- Final value received at deposit end: principal plus accumulated interest.
- Compounding
- Interest earned on both principal and previously earned interest.
- Annualized rate
- Interest rate quoted for one year; converted internally for period-wise calculations.
Benefits of This Calculator
- Quickly compare tenure and rate combinations before locking deposits.
- Understand maturity, principal, and interest split through chart-style outputs.
- Use formula and FAQ context to validate bank app numbers confidently.
Related Calculators
How FD interest is actually taxed in India
FD interest is taxed as income from other sources at your slab rate — there is no special FD tax rate. The bank deducts TDS at 10% (20% if you have not submitted PAN) once your total interest across all FDs in that bank crosses ₹40,000 in a financial year (₹50,000 for senior citizens). TDS is only an advance tax: the actual liability is settled when you file your ITR, where you may owe more (if you are in the 20% or 30% slab) or claim a refund (if your total income is below the exemption limit and you forgot to submit Form 15G/15H).
Two practical implications. First, FDs are not tax-free even after TDS; many people in the 30% slab forget to add the 20% gap when filing and end up with a notice. Second, the interest is taxed in the year it accrues, not just the year it is paid out — so even cumulative FDs need to be declared each year. The calculator above uses the slab you select to estimate the actual cash you keep after tax.
Worked example: ₹6,00,000 at 7.5% for 5 years, 30% slab
- Maturity (gross)
- ₹8,69,705
- Interest earned (gross)
- ₹2,69,705
- TDS deducted by bank (10%)
- ₹26,970
- Additional tax in ITR (20% gap)
- ₹53,941
- Net interest after all tax
- ₹1,88,794
- Effective post-tax yield
- ~5.25% p.a.
Compare this 5.25% post-tax yield against debt mutual funds, RBI Floating Rate Bonds, or tax-free bonds in the secondary market — that is the like-for-like comparison. The 7.5% headline rate is misleading once you are in the higher slabs.