Question
TDS on fixed deposit interest (Section 194A): how much, and how do Form 15G/15H help?
Answer
Bottom line: Banks deduct 10% TDS on FD interest once it crosses ₹50,000 a year (₹1,00,000 for senior citizens) — and you can stop it with Form 15G or 15H.
1. Rate and threshold
TDS under Section 194A is 10% (20% without PAN). From 1 April 2025 the per-bank threshold is ₹50,000 for non-seniors and ₹1,00,000 for senior citizens.
2. Form 15G / 15H
If your total income is below the taxable limit, submit Form 15G (below 60) or Form 15H (senior citizen) to the bank so it does not deduct TDS.
3. Not the final tax
You still add the interest to your income and adjust the TDS already deducted.
Check it with our TDS Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.