{"id":18038,"date":"2026-07-29T05:00:09","date_gmt":"2026-07-29T11:30:09","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=18038"},"modified":"2026-07-29T05:00:10","modified_gmt":"2026-07-29T11:30:10","slug":"tds-on-fd","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/tds-on-fd\/","title":{"rendered":"TDS on FD Interest: Limits, Calculation and Refund Claim Process"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/tds-on-fd\/#What_is_TDS_Deduction\" >What is TDS Deduction?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/tds-on-fd\/#When_is_TDS_Deducted_on_FD_Interest\" >When is TDS Deducted on FD Interest?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/shoonya.com\/blog\/tds-on-fd\/#What_is_the_TDS_Rate_on_FD_Interest\" >What is the TDS Rate on FD Interest?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/shoonya.com\/blog\/tds-on-fd\/#How_is_TDS_on_Fixed_Deposit_Calculated\" >How is TDS on Fixed Deposit Calculated?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/shoonya.com\/blog\/tds-on-fd\/#How_to_Avoid_TDS_on_FD_Interest\" >How to Avoid TDS on FD Interest?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/shoonya.com\/blog\/tds-on-fd\/#How_to_Claim_TDS_Credit_or_Refund\" >How to Claim TDS Credit or Refund?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/shoonya.com\/blog\/tds-on-fd\/#What_to_Do_If_Your_TDS_is_Not_Reflecting\" >What to Do If Your TDS is Not Reflecting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/shoonya.com\/blog\/tds-on-fd\/#How_to_Track_Your_Refund_Status\" >How to Track Your Refund Status?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/shoonya.com\/blog\/tds-on-fd\/#TDS_Deducted_on_Spouses_FD_Who_Can_Claim_the_Credit\" >TDS Deducted on Spouse&#8217;s FD: Who Can Claim the Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/shoonya.com\/blog\/tds-on-fd\/#Final_Thoughts\" >Final Thoughts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/shoonya.com\/blog\/tds-on-fd\/#TDS_on_FD_Interest_FAQs\" >TDS on FD Interest : FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<nav style=\"--separator: &quot;\/&quot;\" class=\"wp-block-breadcrumbs\" aria-label=\"Breadcrumbs\"><ol><li><a href=\"https:\/\/shoonya.com\/blog\/\">Home<\/a><\/li><li><a href=\"https:\/\/shoonya.com\/blog\/personal-finance\/\">Personal Finance<\/a><\/li><li><span aria-current=\"page\">TDS on FD Interest: Limits, Calculation and Refund Claim Process<\/span><\/li><\/ol><\/nav>\n\n\n<meta charset=\"UTF-8\">\n<meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\">\n\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Bricolage+Grotesque:opsz,wght@12..96,400;12..96,600;12..96,700;12..96,800&amp;family=Figtree:ital,wght@0,300;0,400;0,500;0,600;1,400&amp;display=swap\" rel=\"stylesheet\">\n<style>\n  :root {\n    --forest:   #082F24;\n    --mustard:  #EFA145;\n    --reddish:  #AA573D;\n    --white:    #FFFFFF;\n    --fresh:    #EEFFF2;\n    --bg:       #FAFAF8;\n    --surface:  #FFFFFF;\n    --text:     #1C2B24;\n    --muted:    #5A6B62;\n    --border:   #E2EDE6;\n    --green:    #1A6B40;\n  }\n  .blog-wrap, .blog-wrap * { box-sizing: border-box; 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flex-wrap: wrap; justify-content: center; gap: 10px; margin-bottom: 28px; }\n  .final-pill { background: rgba(239,161,69,0.12); border: 1px solid rgba(239,161,69,0.3); color: var(--mustard); font-size: 13px; font-weight: 600; padding: 7px 16px; border-radius: 20px; }\n  .final-cta a { display: inline-flex; background: var(--mustard); color: var(--forest); font-family: 'Bricolage Grotesque', sans-serif; font-weight: 800; font-size: 15px; padding: 14px 32px; border-radius: 8px; text-decoration: none; transition: opacity 0.15s; }\n  .final-cta a:hover { opacity: 0.9; }\n\n  \/* DISCLAIMER *\/\n  .disclaimer { font-size: 12px; color: var(--muted); line-height: 1.7; padding: 16px 20px; background: #F4F4F0; border-radius: 8px; border: 1px solid #E4E4DC; margin: 16px 0; }\n\n  @media (max-width: 640px) {\n    .blog-wrap table { font-size: 14.5px; }\n  }\n<\/style>\n\n\n\n<div class=\"blog-wrap\">\n  <div class=\"prose\">\n\n    <p>Fixed Deposits (FDs) are often considered one of the safest investment options because they offer fixed returns over a specified period. However, many investors are surprised when the interest credited to their account is lower than expected.<\/p>\n    <p>One common reason is TDS (Tax Deducted at Source) on FD interest. Banks and financial institutions may deduct tax from the interest earned on fixed deposits when it exceeds the prescribed limit under the Income Tax Act.<\/p>\n    <p>In this guide, we explain what TDS on FD is, the applicable limits and rates, how it is calculated, and ways to manage or reduce TDS liability.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_is_TDS_Deduction\"><\/span>What is TDS Deduction?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <div class=\"definition-box\">\n      <div class=\"def-label\">Definition<\/div>\n      <p>It is a system where a person or institution making certain payments deducts tax before making the payment and deposits it with the government on behalf of the recipient. The objective of TDS is to collect tax at the source of income rather than waiting until the end of the financial year.<\/p>\n    <\/div>\n\n    <p>When TDS is deducted, the amount is reflected against the taxpayer&#8217;s PAN and can be adjusted against their final income tax liability while filing an income tax return.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"When_is_TDS_Deducted_on_FD_Interest\"><\/span>When is TDS Deducted on FD Interest?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>If your combined interest earnings across all FDs with a single bank exceed the applicable limit, the bank will deduct TDS. Here are the annual TDS threshold limits on FD interest:<\/p>\n\n    <div class=\"table-wrap\">\n      <table>\n        <thead><tr><th>Depositor Category<\/th><th>TDS Threshold Limit<\/th><\/tr><\/thead>\n        <tbody>\n          <tr><td>Regular Individuals (Below 60)<\/td><td>\u20b950,000 per financial year<\/td><\/tr>\n          <tr><td>Senior Citizens (60+)<\/td><td>\u20b91,00,000 per financial year<\/td><\/tr>\n        <\/tbody>\n      <\/table>\n    <\/div>\n\n    <p>Note: The interest earned may still be taxable according to the depositor&#8217;s income tax slab, even if no TDS is deducted, and must be reported under &#8220;Income from Other Sources&#8221; when filing your Income Tax Return (ITR).<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_is_the_TDS_Rate_on_FD_Interest\"><\/span>What is the TDS Rate on FD Interest?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>The TDS rate on fixed deposit interest depends on whether the depositor has provided a valid PAN to the bank.<\/p>\n\n    <div class=\"table-wrap\">\n      <table>\n        <thead><tr><th>Particulars<\/th><th>TDS Rate<\/th><\/tr><\/thead>\n        <tbody>\n          <tr><td>PAN submitted<\/td><td>10%<\/td><\/tr>\n          <tr><td>PAN not submitted<\/td><td>20%<\/td><\/tr>\n        <\/tbody>\n      <\/table>\n    <\/div>\n\n    <p>The TDS rate applies only when the FD interest exceeds the applicable threshold.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"How_is_TDS_on_Fixed_Deposit_Calculated\"><\/span>How is TDS on Fixed Deposit Calculated?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <div class=\"example-box\">\n      <div class=\"ex-label\">Formula<\/div>\n      <p>TDS = Interest Earned \u00d7 Applicable TDS Rate<\/p>\n    <\/div>\n\n    <p>Note: Banks calculate TDS based on the cumulative interest earned across all fixed deposits held by a customer with the same bank.<\/p>\n\n    <h3>TDS on FD Calculation Example<\/h3>\n    <p>Suppose an individual has a fixed deposit that generates \u20b980,000 of interest during a financial year. Assuming PAN has been submitted and the applicable TDS rate is 10%:<\/p>\n\n    <div class=\"table-wrap\">\n      <table>\n        <thead><tr><th>Particulars<\/th><th>Amount<\/th><\/tr><\/thead>\n        <tbody>\n          <tr><td>FD Interest Earned<\/td><td>\u20b980,000<\/td><\/tr>\n          <tr><td>TDS Rate<\/td><td>10%<\/td><\/tr>\n          <tr><td>TDS Deducted<\/td><td>\u20b98,000<\/td><\/tr>\n          <tr><td>Net Interest Credited<\/td><td>\u20b972,000<\/td><\/tr>\n        <\/tbody>\n      <\/table>\n    <\/div>\n\n    <p>In this case, the bank may deduct \u20b98,000 as TDS and credit the remaining interest amount to the depositor. The TDS deducted can later be claimed as a tax credit while filing the income tax return.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"How_to_Avoid_TDS_on_FD_Interest\"><\/span>How to Avoid TDS on FD Interest?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>If your total income is below the taxable limit, you may be able to avoid TDS deduction on FD interest by submitting the appropriate self-declaration form to the bank.<\/p>\n    <ul>\n      <li><strong>Submit Form 15G:<\/strong> Individuals below 60 years of age can submit Form 15G if their tax liability for the financial year is nil and they meet the eligibility conditions.<\/li>\n      <li><strong>Submit Form 15H:<\/strong> Senior citizens can submit Form 15H if their estimated tax liability for the financial year is nil.<\/li>\n      <li><strong>Link PAN with Your Bank Account:<\/strong> Providing a valid PAN ensures that TDS, if applicable, is deducted at the standard rate rather than the higher rate that applies when a PAN is not submitted.<\/li>\n      <li><strong>Spread Deposits Across Eligible Family Members:<\/strong> Some investors distribute investments among eligible family members to manage interest income. However, tax rules such as clubbing provisions may apply in certain cases, so investors should consider the applicable tax regulations.<\/li>\n      <li><strong>Track Total Interest Income:<\/strong> Monitor the total interest earned across all fixed deposits and banks during the financial year. This can help you estimate potential TDS deductions and plan your taxes accordingly.<\/li>\n    <\/ul>\n\n    <h2><span class=\"ez-toc-section\" id=\"How_to_Claim_TDS_Credit_or_Refund\"><\/span>How to Claim TDS Credit or Refund?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>If TDS has been deducted from your FD interest, you can claim credit for the deducted amount while filing your Income Tax Return (ITR).<\/p>\n    <p>The TDS deducted by the bank is linked to your PAN and is reflected in Form 26AS and the Annual Information Statement (AIS).<\/p>\n\n    <h3>Steps to Claim TDS Credit<\/h3>\n    <ol>\n      <li>Check the TDS details in Form 26AS or AIS.<\/li>\n      <li>Report the FD interest income while filing your ITR.<\/li>\n      <li>Claim the TDS amount already deducted by the bank.<\/li>\n      <li>Pay additional tax if your tax liability exceeds the TDS deducted.<\/li>\n      <li>Claim a refund if the TDS deducted is higher than your actual tax liability.<\/li>\n    <\/ol>\n\n    <div class=\"example-box\">\n      <div class=\"ex-label\">Example<\/div>\n      <p>If the bank deducted \u20b98,000 as TDS but your actual tax liability is only \u20b93,000, you may be eligible to claim a refund of \u20b95,000, subject to tax calculations.<\/p>\n    <\/div>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_to_Do_If_Your_TDS_is_Not_Reflecting\"><\/span>What to Do If Your TDS is Not Reflecting?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>If the TDS deducted on your FD interest is not reflected in Form 26AS or AIS:<\/p>\n    <ul>\n      <li>First, check whether the bank has reported it correctly against your PAN.<\/li>\n      <li>If the income was already declared in an earlier year but the TDS was deducted or reported in a later year, you may be able to claim the credit using Form 71 on the Income Tax e-Filing portal.<\/li>\n      <li>It must generally be filed within 2 years from the end of the financial year in which the TDS was deducted.<\/li>\n    <\/ul>\n\n    <h2><span class=\"ez-toc-section\" id=\"How_to_Track_Your_Refund_Status\"><\/span>How to Track Your Refund Status?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>If excess TDS has been deducted from your FD interest and you have claimed a refund while filing your Income Tax Return (ITR), you can track the refund status online.<\/p>\n    <ol>\n      <li>Visit the Income Tax e-Filing portal.<\/li>\n      <li>Log in using your PAN and password.<\/li>\n      <li>Go to the filed returns section.<\/li>\n      <li>Select the relevant assessment year.<\/li>\n      <li>Check the refund status displayed against your return.<\/li>\n    <\/ol>\n    <p>You can also track the refund status through the NSDL or authorised refund processing portal, if applicable.<\/p>\n    <p>Note: Refund timelines may vary depending on return processing and verification requirements.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"TDS_Deducted_on_Spouses_FD_Who_Can_Claim_the_Credit\"><\/span>TDS Deducted on Spouse&#8217;s FD: Who Can Claim the Credit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>The person who is required to include the FD interest in their taxable income is generally entitled to claim the TDS credit.<\/p>\n\n    <div class=\"example-box\">\n      <div class=\"ex-label\">Example<\/div>\n      <p>If you gift money to your spouse and the amount is invested in an FD, the interest earned may be clubbed with your income under the clubbing provisions of the Income Tax Act.<\/p>\n    <\/div>\n\n    <p>In such cases:<\/p>\n    <ul>\n      <li>The FD may be in the spouse&#8217;s name.<\/li>\n      <li>The TDS may be deducted against the spouse&#8217;s PAN.<\/li>\n      <li>The interest income may be taxable in the hands of the person who provided the funds.<\/li>\n    <\/ul>\n    <p>To claim the TDS credit correctly, taxpayers may need to follow the applicable income tax rules and maintain supporting records regarding the source of funds.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span>Final Thoughts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>TDS on FD interest helps the government collect tax at the source, but it does not always represent your final tax liability. If excess TDS is deducted, you can claim it as a credit or refund while filing your Income Tax Return. Before choosing any investment, it is important to understand how returns are taxed so you can estimate your actual post-tax income more clearly.<\/p>\n    <p>Looking beyond fixed deposits? <a href=\"https:\/\/shoonya.com\/open-an-account\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=tds-fd\">Open a free Demat account<\/a> to explore stocks, mutual funds, IPOs, and other investment options based on your goals and risk appetite.<\/p>\n \n\n    <h2><span class=\"ez-toc-section\" id=\"TDS_on_FD_Interest_FAQs\"><\/span>TDS on FD Interest : FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <div class=\"faq-item\">\n      <h3>What is TDS on FD interest?<\/h3>\n      <p>TDS on FD interest is the tax deducted by a bank or financial institution when the interest earned on fixed deposits exceeds the prescribed threshold limit during a financial year.<\/p>\n    <\/div>\n    <div class=\"faq-item\">\n      <h3>Is TDS deducted on the FD principal amount?<\/h3>\n      <p>No, TDS is deducted only on the interest earned on the fixed deposit, not on the principal amount invested.<\/p>\n    <\/div>\n    <div class=\"faq-item\">\n      <h3>Can I get a refund of the TDS deducted from my FD?<\/h3>\n      <p>Yes, if the TDS deducted is higher than your actual tax liability, you can claim the excess amount as a refund while filing your Income Tax Return (ITR).<\/p>\n    <\/div>\n    <div class=\"faq-item\">\n      <h3>How can I check the TDS deducted on my FD?<\/h3>\n      <p>You can check the TDS deducted through Form 26AS, the Annual Information Statement (AIS), or the TDS certificate issued by the bank.<\/p>\n    <\/div>\n    <div class=\"faq-item\">\n      <h3>Is FD interest taxable if no TDS is deducted?<\/h3>\n      <p>Yes, even if no TDS is deducted because the interest is below the threshold limit, the interest income may still be taxable according to your income tax slab.<\/p>\n    <\/div>\n    <div class=\"faq-item\">\n      <h3>Can senior citizens avoid TDS on FD interest?<\/h3>\n      <p>Eligible senior citizens whose estimated tax liability is nil may submit Form 15H to the bank to request non-deduction of TDS, subject to applicable conditions.<\/p>\n    <\/div>\n    <div class=\"faq-item\">\n      <h3>What is the current TDS threshold limit on FD interest?<\/h3>\n      <p>The threshold limit of TDS is generally \u20b950,000 per financial year for regular individuals and \u20b91,00,000 per financial year for senior citizens.<\/p>\n    <\/div>\n    <div class=\"faq-item\">\n      <h3>What is the TDS rate on FD interest?<\/h3>\n      <p>The TDS rate is generally 10% if PAN is submitted and 20% if PAN is not submitted, subject to applicable tax rules.<\/p>\n    <\/div>\n\n<br>\n    <p class=\"source-line\">Source: MoneyControl<\/p>\n\n    <div class=\"final-cta\">\n      <h3>Explore More Than Just FDs with Shoonya<\/h3>\n      <div class=\"final-pills\">\n        <span class=\"final-pill\">\u20b90 account opening fee<\/span>\n        <span class=\"final-pill\">\u20b90 AMC charges<\/span>\n        <span class=\"final-pill\">\u20b90 brokerage in equity delivery<\/span>\n        <span class=\"final-pill\">Stocks, F&amp;O, IPOs <\/span>\n      <\/div>\n      <a href=\"https:\/\/shoonya.com\/open-an-account\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=cta\">Open Free Demat Account \u2192<\/a>\n    <\/div>\n\n    <div class=\"disclaimer\">\n      <strong>Disclaimer:<\/strong> This content is for education and awareness purposes only and should not be considered tax or investment advice. Tax rates, thresholds, and rules are subject to change; please consult a tax professional and read all related documents carefully before making financial decisions.\n    <\/div>\n\n  <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Fixed Deposits (FDs) are often considered one of the safest investment options because they offer fixed returns over a specified period. However, many investors are surprised when the interest credited to their account is lower than expected. One common reason is TDS (Tax Deducted at Source) on FD interest. Banks and financial institutions may deduct &hellip; <a href=\"https:\/\/shoonya.com\/blog\/tds-on-fd\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;TDS on FD Interest: Limits, Calculation and Refund Claim Process&#8221;<\/span><\/a><\/p>\n","protected":false},"author":17,"featured_media":18040,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[11],"tags":[10333,10329,10331,4752,10332,10330,10327,2521,10328],"class_list":["post-18038","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance","tag-fd-tds-rate","tag-how-tds-on-fixed-deposit-calculated","tag-how-to-avoid-tds-on-fd","tag-tds-claim","tag-tds-deducted-on-spouses-fd","tag-tds-deduction-on-fd-interest","tag-tds-on-fd","tag-tds-on-fd-interest","tag-what-is-tds-deduction"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is TDS on FD Interest? 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