Tax on FD Interest – Complete Guide

Interest earned on fixed deposits is taxable in India under "Income from Other Sources". Banks deduct TDS when interest credited in a financial year exceeds ₹40,000 (₹50,000 for senior citizens).

TDS on FD Interest

The bank deducts TDS at 10% if total FD interest credited exceeds ₹40,000 (₹50,000 for seniors). Use our FD tax calculator to estimate.

Form 15H and 15G

Submit Form 15H (seniors) or Form 15G to avoid TDS if your total income is below the taxable limit. You still must report interest in your ITR.