TDS on FD Interest and Forms 15G/15H
When banks deduct TDS on fixed deposit interest, the thresholds, and how Form 15G or 15H can prevent deduction.
Banks deduct tax at source (TDS) from fixed deposit interest once it crosses a yearly limit per bank. That deduction is an advance payment of your tax, not an extra tax, but it can lock up money if your income is below the taxable limit.
When TDS applies
TDS applies when total interest from a bank in a year exceeds a threshold, which is higher for senior citizens. The rate is 10% when you have given your PAN, and higher if you have not. Thresholds have been revised in recent Budgets, so check the current figure.
Form 15G and 15H
- Form 15G: for resident individuals below 60 whose total income is below the taxable limit.
- Form 15H: for senior citizens aged 60 and above, with a similar condition.
Submit the form to each bank at the start of the financial year so no TDS is cut. The condition is about your total tax liability being nil, not only the FD interest. Giving the form when your tax is not nil is an offence, so be sure of your numbers.
If TDS was cut anyway
Claim it as credit when you file your return, and get a refund if your final tax is lower. Check Form 26AS or the AIS for the deducted amount. Steps are in how to file your ITR.
Planning
Estimate your interest with the FD calculator and your tax with the income tax calculator. See also senior citizen savings options.
Thresholds and rates change. Confirm with your bank or the Income Tax Department.
Frequently asked questions
Is TDS on FD interest an extra tax?
No. It is an advance payment against your tax and can be claimed back as a refund if your total tax is lower.
Do I need to submit 15G every year?
Yes, normally at the start of each financial year to each bank.
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Last reviewed: October 2026. General education, not financial advice.