What is the TDS rate on Fixed Deposit interest?

TDS on FD interest is 10% if PAN is provided. If PAN is not furnished, TDS is 20%. TDS is not deducted if total interest in a year is below ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below taxable limit.

🏦 Updated for FY 2025-26 · Budget 2025

TDS Calculator

Q: How can I claim TDS refund?

If TDS deducted exceeds your actual tax liability, you can claim refund by filing your Income Tax Return (ITR). The excess TDS will be refunded to your bank account after processing.

Calculate Tax Deducted at Source on salary, fixed deposits, rent, property sale, professional fees and more. Know exactly how much TDS will be deducted from your income.

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TDS Calculator

⚖️ TDS Rules

TDS Category

Annual Salary (₹)

PAN Available?

Yes No (Higher Rate)

Senior Citizen (60+)?

No Yes

Total Deductions Declared (₹) (80C, 80D, HRA etc.)

Tax Regime

New Regime Old Regime

Note: For salary TDS, employer calculates based on estimated annual income and deductions. For non-salary, flat TDS rates apply as per sections 194A/194I/194IA etc.

Total TDS Deducted

₹0

Monthly TDS

₹0

Effective TDS Rate

Net Amount After TDS

₹0

📋 TDS Rate Chart — FY 2025-26

Section	Nature of Payment	Rate	Threshold
192	Salary	Slab rate	₹2.5L / ₹4L
194A	FD / Bank Interest	10%	₹40K / ₹50K*
194I	Rent (Land/Bldg)	10%	₹2.4L/yr
194IA	Property Sale	1%	₹50L
194J	Professional Fees	10%	₹30K
194H	Commission/Brokerage	5%	₹15K

* ₹50K threshold for senior citizens. Without PAN: 20% (all categories).

Understanding TDS

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What is TDS?

Tax Deducted at Source is a mechanism where the payer deducts tax before making a payment. It ensures tax collection at the point of income generation, reducing evasion.

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Form 15G/15H

If your total income is below taxable limit, submit Form 15G (below 60) or 15H (senior citizens) to your bank to avoid TDS on FD interest.

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TDS Refund

If TDS deducted exceeds your actual tax liability, claim refund by filing ITR. Check Form 26AS/AIS to verify TDS credits before filing.

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Frequently Asked Questions

What is TDS and when is it deducted? ▼

TDS (Tax Deducted at Source) is a mechanism where the payer deducts tax at prescribed rates before making payment. It applies to salary, interest on FDs (above ₹40K), rent (above ₹50K/month or ₹2.4L/year), property sale (above ₹50L), professional fees (above ₹30K), and more. The deducted amount is deposited with the government and reflected in your Form 26AS.

What is the TDS rate on FD interest? ▼

TDS on FD interest (Section 194A) is 10% if PAN is provided. Without PAN, TDS is 20%. No TDS if total interest is below ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your total income is below taxable limit.

How can I claim TDS refund? ▼

File your Income Tax Return (ITR) with all income details. If TDS deducted exceeds your actual tax liability, the excess amount will be refunded. Always verify TDS credits in Form 26AS/AIS before filing. Refund is typically processed within 4-6 weeks of ITR verification.

What happens if TDS is not deducted? ▼

If the deductor fails to deduct TDS, they are liable to pay the tax amount themselves along with interest. The deductor can also face penalties under Section 271C for non-deduction. As the recipient, you're still liable to pay tax on the income received.