Is there a TDS on Fixed Deposit/Recurring Deposit income?

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• How much TDS is applicable on Fixed Deposit and Recurring deposit interest?

  TDS rates on FDs/RDs are as follows: @ 10% on interest to residents, @ 20% is applicable in absence of PAN / invalid PAN. @ 30.90% to non-resident Indians

• TDS

  TDS means any tax is deducted on your income/ receipts. You can find these details in Form 26AS. By uploading Form 26AS these data will be automatically filled up. TAN(Tax deduction and Collection account number)= You will get this at the form 16 or ...

• Is there a deduction available on interest income from Fixed Deposits/Recurring Deposits?

  There is no deduction available on interest on FDs/RDs. The entire interest income earned from these is liable to be taxed on accrual basis at the slab rate applicable.

• Does filing Form 15G/Form15H mean that my interest income is not taxable?

  Form15G/Form15H is only a declaration that no TDS should be deducted on your interest income since tax on your total income is nil. Interest income from fixed deposits, recurring deposits, and corporate bonds is always taxable.

• Which section of the I-T Act deals with TDS on interest income?

  Section 194A deals with a deduction of TDS on interest other than ‘interest on securities’. This could include Fixed Deposits & Loans and Advances other than banks. This TDS is deducted for resident individuals only.