Page last updated:
TDS on FD Interest (Section 194A)
Banks deduct 10% TDS on fixed deposit interest once your interest from that bank crosses ₹50,000 in the year, or ₹1 lakh if you are a senior citizen. If your total income is below the taxable limit, you can submit Form 15G or 15H to avoid TDS.
Quick answer (FY 2025-26 and FY 2026-27)
- TDS rate
- 10%
- Threshold
- ₹50,000 a year per bank (₹1 lakh for seniors)
TDS on fd interest: rate chart
| Payment | Section (1961 Act) | New section (2025 Act) | Rate | Threshold |
|---|---|---|---|---|
| FD and RD interest from a bank, co-operative bank or post office | 194A | 393(1), Sl. No. 5(ii) | 10% | ₹50,000 a year |
| Same, paid to a senior citizen | 194A | 393(1), Sl. No. 5(ii) | 10% | ₹1,00,000 a year |
| Interest from companies, NBFCs and others | 194A | 393(1), Sl. No. 5(iii) | 10% | ₹10,000 a year |
| Interest on NRO deposits to an NRI | 195 | 393(2) | 30% + surcharge + 4% cess | No threshold |
How the FD TDS limit is counted
The limit is per bank for the year, adding up interest across all branches of that bank. If interest from one bank is ₹60,000, TDS of ₹6,000 is deducted. The limits were raised on 1 April 2025 from ₹40,000 (₹50,000 for seniors).
Without a PAN, TDS is 20%. Interest on NRE and FCNR deposits is tax-free for NRIs, so no TDS applies to it.
Avoiding TDS with Form 15G or 15H
If your total income is below the taxable limit, submit Form 15G (below 60) or Form 15H (60 and above) to each bank at the start of the year. Under the new regime, taxable income up to ₹12 lakh has no tax after the rebate, but Form 15G can only be used if income is below the basic exemption limit, so check before submitting.
TDS is not your final tax. FD interest is added to your income and taxed at slab rates; TDS is credited against that tax and any excess is refunded.
TDS on fd interest calculator
Runs in your browser. Nothing you enter is sent anywhere.
Frequently Asked Questions
What is the TDS rate on FD interest?
What is the TDS limit on FD interest for FY 2026-27?
How can I avoid TDS on FD interest?
Is the FD TDS limit per branch or per bank?
Is TDS deducted on NRE FD interest?
What is the new section for TDS on interest?
What is the due date for depositing TDS on fd interest?
What happens if TDS on fd interest is not deducted or deposited on time?
Which TDS return and certificate apply to TDS on fd interest?
How can the payee check the TDS deducted?
Did the Income-tax Act 2025 change TDS rates from April 2026?
New section references are to the Income-tax Act, 2025, in force from 1 April 2026. Verify the table serial number against the official text before quoting it in a return or notice reply.