For Fixed Deposits/ Recurring Deposits, TDS is not applicable on the interest earned up to Rs. 40,000 under Section 194A. However, TDS will be applicable if the interest received or likely to be received, during the financial year, exceeds Rs. 40,000. Further, in case of Senior Citizen, TDS will be applicable if the interest received or likely to be received, during the financial year, exceeds Rs. 50,000. All customers other than a company, firm or non-resident, whose tax on their estimated total income during the year will be nil, can submit a self-declaration form in the prescribed Form 15G/15H for the purpose of availing TDS exemption under section 194A of the Income Tax Act in accordance with the provisions of section 197A. A fresh Form 15G/15H is required to be submitted for each Financial Year. Form 15G/15H should be submitted at the time of creation of FD or beginning of Financial Year whichever is earlier. Further, fresh Form 15G/H needs to be submitted for all subsequent deposit(s) booked during the Financial Year. Following are the limits for accepting Form 15G/ 15H. In case the limits are breached, Form 15G/ 15H will not be accepted.

Category	Form	Age	Threshold Exemption Limit (Rs.)
Individual	15G	Less than 60 years	3,00,000
Senior Citizen (Individual)	15H	60 years & above	7,00,000
Other than Individual (i.e. Trust,Association, Club, HUF and Society)	15G	Not Applicable	3,00,000

Type of Customers	Tax Rate	Surcharge	Education Cess	Total Taxes
Resident Individual & HUF	10%	----	----	10%
Corporate Entity	10%	----	----	10%
Firms	10%	----	----	10%
Co-operative Societies & Local Authority	10%	----	----	10%

If the interest amount is not sufficient to recover TDS, the amount is taken from the principal of the FD.

Quarter	Due Date
1st Quarter	15th August
2nd Quarter	15th November
3rd Quarter	15th February
4th Quarter	15th June of next Financial Year

Yes, in case of reinvestment FDs, the interest reinvested is calculated post TDS recovery. Hence, the final maturity amount for reinvestment FDs would vary to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.

• TDS at a higher rate of 20% will be applied on resident FDs with interest income of Rs. 40,000/- (Rs. 50,000/- in case of Senior Citizen) or above during the Financial Year
• No TDS credit from the Income Tax department
• No TDS certificate will be issued (As per CBDT circular no:03/11)
• Form 15G/H and other exemption certificates will be invalid

Yes. If the change or enhancement in your deposit portfolio earns a cumulative interest of greater than Rs. 40,000/- (Rs. 50000/- in case of Senior Citizen) in a financial year along with that of the earlier portfolio, then you will be liable for TDS on your current portfolio. Note: If interest on the current portfolio is not sufficient to cover TDS, then TDS will be recovered from the principal.

TDS is deducted every time the Bank pays/reinvests interest during the Financial Year. In addition, TDS is also deducted on interest accrued (but not yet paid) at the end of Financial Year i.e. on 31^st March.

Yes. TDS on RD is deducted as per the income tax guidelines under Section 194A w.e.f. 01st June 2015.

As per Rule 114B of Income Tax Rules read with section 139A of Income Tax Act, you are required to quote a valid PAN for the purpose of creating Fixed Deposit (s)/Recurring Deposit(s) of more than Rs. 50,000 in a single day or if the aggregate amount (for all the FDs & RDs created in a financial year) exceeds Rs. 5,00,000 during the financial year. In case, you do not have a PAN, then you are required to furnish the declaration in Form 60.