TDS on Fixed Deposit

May 10, 2023 Rajeev Kumar

Interest income from investments in a bank fixed deposit account is subject to TDS deduction. Read on to find details.

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TDS is deducted at the rate of 10% on interest income from Fixed Deposit.

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In case the depositor has not given his/her PAN details, 20% of the interest income is charged as TDS.

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TDS of 10% is applicable to General as well as Senior Citizens aged below or above 60 years respectively.

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However, Senior Citizens can claim a tax deduction up to Rs 50,000 on interest income from FD.

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No additional tax deduction is allowed on Fixed Deposits.

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However, deposits up to Rs 1.5 lakh in Tax-Saver FD qualifies for Section 80C deduction. Read below to know the best rates on tax-saver FDs

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