Top 6 Rules for TDS on Fixed Deposit

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1. Types of Income subject to deduction of tax at source wrote:

   [...] Top 6 Rules for TDS on Fixed Deposit [...]

   April 26th, 2009 at 12:33 am
2. Fixed Deposits(FD) Interest Rates wrote:

   [...] future articles here. How to avoid TDS on Fixed Deposit? Top 5 Rules for Fixed Deposit Investment Top 6 Rules for TDS on Fixed Deposit Mahindra Finance Fixed Deposit [...]

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3. How to avoid TDS on Fixed Deposit? wrote:

   [...] Update : Top 6 Rules for TDS on Fixed Deposit [...]

   May 18th, 2009 at 1:28 am
4. What is Form 16 and Form 16A? wrote:

   [...] Top 6 Rules for TDS on Fixed Deposit [...]

   August 28th, 2009 at 12:01 am
5. Fixed Deposit for Monthly Income wrote:

   [...] Top 6 Rules for TDS on Fixed Deposit [...]

   September 9th, 2009 at 6:46 am
6. TDS Rates effective from 1st October,2009 wrote:

   [...] Top 6 Rules for TDS on Fixed Deposit [...]

   November 3rd, 2009 at 6:33 pm

1. Takalani said:

   This one is not a comment.i am jst asking about the possibility of claiming the fixed deposit invested money.

   June 24th, 2009 at 12:18 am
2. krishnas said:

   HI Takalani,

   Please elaborate your questions. I am not understanding you question.

   Thanks,
   Krishna

   June 24th, 2009 at 12:55 am
3. veerababu said:

   Hi

   If i have short term FB above 1 lack is it effect TDS cutting.

   kindly give me replay i need to submitt my IT returns.

   July 6th, 2009 at 3:04 am
4. krishnas said:

   HI veerababu,

   I don’t think Rs.100000 will affect the TDS. If the total interest is above Rs.10000 only the TDS will be deducted. But, how ever if you get any interest income, you have to mention in the IT return filing.

   Thanks,
   Krishna

   July 6th, 2009 at 3:14 am
5. geeyes said:

   Hi,
   By splitting the principal amount and investing in different banks, we can avoid TDS on Fixed deposit. But, is there any drawback / disadvantage by doing so.

   Regards,
   Geeyes

   July 13th, 2009 at 5:32 am
6. krishnas said:

   HI Geeye,

   There won’t be any problem.

   Thanks,
   Krishna

   July 13th, 2009 at 9:09 pm
7. gigi said:

   Hi,

   I have two FD’s, Rs. 50,000 for 5 years(tax saving FD)
   and another(Rs. 80,000) for one year in same branch.
   One will yeild a total of 87000 and another 85000.
   How much TDS will be deducted. How I can get rid of TDS?

   Thanks in advance,

   Gigi

   July 20th, 2009 at 3:45 am
8. krishnas said:

   HI Gigi,

   If you are already paying the tax or your income is above the tax slab, there is no way to escape from the TDS. If you don’t have any other income please submit the Form 15G to avoid TDS. For more details please consult with the banker.

   Thanks,
   Krishna

   July 20th, 2009 at 5:13 am
9. subala said:

   hi,

   how to get the TDS back, in case of non working (house wife) forget to give the for mform15G ? bank office suggested to file the tax returns and claim back. i do not have clear idea how claim and what category i can fill-up ?

   can you pl. reply me.

   thanks,
   subala

   July 21st, 2009 at 2:59 am
10. Sameer Bhagat said:

    Hi Krishna,

    I had a query for you. I am a salaried employee. If I split my FDs into different accounts and ensure that my returns from each bank don’t exceed Rs, 10000, the TDS will not be deducted from the returns although the overall returns in gained from all accounts exceeds Rs. 10000. But, at the end of the year do I need to show this as income while filing the tax returns? What percentage of the returns will be deducted as income tax, if any? What if the returns from all accounts don’t exceed 10000 – do I still need to mention this returns as income?

    July 21st, 2009 at 3:20 am
11. krishnas said:

    HI Subala,

    You have to file the IT returns and claim the money back. You will get it with in one year. If you want to know about the different types of ITR please visit this site:
    http://www.incometaxindia.gov.in/download_all.asp

    Thanks,
    Krishna

    July 21st, 2009 at 3:28 am
12. debashish said:

    hi, i am a doctor and usually i make FDs of 50,000 or so, i am planning to invest 1-2 lakhs in FDs of NBFCs and companies, please tell me how to break it up so that i don’t have to pay TDS or atleast minimum possible, should i invest in larger or smaller amounts?

    August 19th, 2009 at 9:23 am
13. krishnas said:

    Hello debashish,

    If you want to avoid the TDS please deposit in the smaller amounts. Also split the amount in different branches.

    Thanks,
    Krishna

    August 19th, 2009 at 9:37 am
14. Sherwin John said:

    Dear Mr. Krishna,

    I am an NRI working in the Gulf. I plan to quit and return back to India next year.

    In view of above, I have the following queries with regard to the money in my NRE Savings Account.

    1) How long can I retain my NRE Savings Account and NRE Fixed Deposits after my return back to India ?

    2) After my return to India, can I put the money from “NRE Savings Account” to Domestic Fixed Deposits ?

    3) As I will not be having any other source of income in India, can I submit a 15G form to avoid TDS if the interest earned against the above FD’s is below the exemption limit of Rs. 1,60,000.

    Your assistance will be highly appreciated.

    Thank you,

    Sherwin John

    August 20th, 2009 at 2:43 am
15. Ksri said:

    Pls tell me if iam investing in a company they are asking me to give form 15g other wise PAN, so i went through the form it ask weather you are a acsasee or not then give details of you area income tax office ,and the company also asks for two forms and one they will give to IT department so tell me weather it will create any problem giving form 15G

    October 21st, 2009 at 3:14 am
16. krishnas said:

    Hello Kari,

    You have to learn what is Form 15G and the purpose of the form. Read this article to know more about the form 15g:
    http://www.thinkplaninvest.com/2009/08/what-you-should-know-about-form-15g-and-form-15h/

    It will not create any problem by submitting the form 15g. need not worry.

    Thanks,
    Krishna

    October 21st, 2009 at 7:35 pm
17. PK SETHI said:

    I want to know if Banks are to deduct TDS on Maturity of FD or they can deduct TDS without crediting any amount to invester & pay less Interest on Maturity than the amount commited at the time of opening of FD, saying that amount paid less is because of TDS deducted.

    November 13th, 2009 at 5:00 pm
18. Suresh.K said:

    Dear Mr.Krishna,

    Where do we get form 15G and 15H?

    Thanks
    Suresh.K

    January 18th, 2010 at 4:29 am
19. Pranay Parikh said:

    Question – I have 7 lacks fd in hdfc bank, i m 30 years old. how can i stop deducting TDS ? All 7lacks are split in 7 FDs. Can u plz answer. thanks

    January 30th, 2010 at 6:26 pm
20. krishnas said:

    Hello Suresh.K,

    You can get it from the banks. or download from the internet.

    Thanks,
    Krishna

    January 30th, 2010 at 11:27 pm
21. krishnas said:

    Hello Pranay Parikh,

    That is the only way.

    Thanks,
    Krishna

    January 30th, 2010 at 11:33 pm
22. karthik said:

    Dear Krishna
    I have a doubt
    Suppose you have 5 FD’s of each 45000 in 5 different banks.Each FD interest will never exceed 10000 suppose.so each individual bank will not cut andy TDS this i agree.BUT what about when filing the income tax you have to show this interest earned on FD as a part of your income at that time you will get caught and your total income will definetely exceed and you have to pay tax.Now please tell me how to avoid tax from these incometax govt.

    February 8th, 2010 at 2:36 pm
23. krishnas said:

    Hello Karthik,

    While filing the IT return you have to show the interest income.

    Thanks,
    Krishna

    February 8th, 2010 at 9:11 pm
24. Chinmaya said:

    Hi,

    I am working as a professional in the IT services sector and i pay tax every year based on the Form 16 provided by my company.
    I have deposited INR 15000/- in the sahara infrastructure deposit scheme and will continue to do so for next 5 years. Do i need to submit the Form 15G to Sahara. Please help me in this

    March 6th, 2010 at 2:06 am
25. Nilesh said:

    Very Informative! I am a male, my age is 29 yrs, I have a FD in SBI of 1.5 lacs at the interest rate of 9.5% p.a. for 3 years, while my salary is below 10k/month, I want to fill form no.15G to evade TDS on the FD. Am I eligible

    March 29th, 2010 at 8:48 am
26. arnav said:

    repling to Nilesh’s query :You can Submit form 15 G if your total income is less than 160000Rs after adding the interest income.

    April 7th, 2010 at 5:24 am
27. Hiral Suthar said:

    Hi..,

    We are working as an NGO for animal welfare, We have some fix deposits in different nationalize banks. we can also submit form No. 15G or 15H for avoid deduction of tds on gaining interest.

    May 19th, 2010 at 12:49 am
28. Ashok Kumar Karmakar said:

    If my wife submit 15 G and her income from fixed deposit as Interest is Rs 10,000.00, whether Income Tax Department will deduct any amount?
    Please let me know.

    May 22nd, 2010 at 12:16 am
29. sanjay sarkar said:

    being I am govt employee I do not come under income tax after standard deduction of Rs.1,000,00/- and the SBI has deducted tax on interest from my fixed deposits without my knowledge & intimation to me.Since customers do not know the procedure and neither the SBI advised how to save tax on interest from FDs.The role of SBI on the above subject was correct ? However, I request to please let me know the procedures and required forms “on how can I get my unjustified deducted tax returned at the earliest “. I have also PAN card which I have quoted in my every FD Forms while opening FDs. With due regards and hoping for the best solutions from your end.

    June 4th, 2010 at 8:12 pm
30. sanjay sarkar said:

    Hi Krishna, please help me answering on my comments/querries dated 4th June/10 of 8:12 pm posted as above. I am anxiously waiting for your reply on the above matter please. Please reply

    June 9th, 2010 at 6:19 am
31. sanjay sarkar said:

    Hi Krishna, please help me answering on my above querries dated 4th June/10 of 8:12 pm posted as above. I am anxiously waiting for your reply on the above captioned matter please. Please reply soon.

    June 9th, 2010 at 6:20 am
32. krishnas said:

    Hello sanjay sarkar,

    What SBI did was correct. They have deducted the TDS on your interest income. You have to submit Form 15G to avoid any TDS. To recover the amount, you have to file IT returns.
    Read this article for more details:
    http://www.thinkplaninvest.com/2009/08/what-you-should-know-about-form-15g-and-form-15h/

    Thanks,
    Krishna

    June 9th, 2010 at 6:33 am
33. milind said:

    Hi Krishna,

    this is very useful information.

    I have question here
    in aug 2008 my father(on behalf of me) put some amount in FD for 1 year in nationalize bank with interest of 9.5%. after 1 year(on maturity) bank deducted TDS of 10% on whatever interest I earn.

    However, my status was non-resident at that time so I was not require to file any income tax return that time.

    Can I claim that TDS by filing 15G form since my income from interest will not come under tax bracket?

    please reply

    milind

    June 16th, 2010 at 10:54 am
34. AKHIL said:

    Good day,
    orst of all a big thanks to you for solving so many queries and also helping others to understand the tax matters.
    i have a query too. i have given my flat on rent at 15000 per month. the tds is being borne by the hotel which has taken it on rent. now while filing my it returns so i show my rent as my income since the tds is already paid by the tenants?
    i feel that since it would exceed my taxable slab, i too would end up paying tax to government when the tds has already been deposited.
    kindly clarify and oblige
    thanks regards akhil

    June 21st, 2010 at 11:22 pm
35. Kumar said:

    Hi krishna,

    Understood that TDS will not be deducted if we split amouts across different branches/banks.( I had done actually that)

    Now for some reason (lack of knowledge) I did not show my interest amount which is more than 10,000 in my IT return.

    my ITR has been filed and now what will happen . Any notice going to come from IT office(when)?.

    I want to pay tax if/when the IT office contacts me. Heard they will charge some fine and I am ready to pay.

    Is there anything to worry now? any other suggestion?

    Thanks
    Kumar

    July 6th, 2010 at 8:19 am
36. Muhammad said:

    i want to know about the limit for interest in case of NBFC

    July 11th, 2010 at 9:57 pm
37. Gowri Nagarajan said:

    I am a lady aged 63 years. I have an annual income of Rs. 4 Lacs, almost all from Bank deposits..
    Considering the current income tax slabs of “1.6 lacs- No Tax and Up to 5 Lacs 10% tax”, my tax commitment for AY11-12, works out to only about Rs. 21,000.
    As banks are deducting 10% TDS on all interest income over Rs. 10,000, I end up paying Rs 40,000 as tax through TDS.
    Can I give From-15G to avoid avoid excessive TDS? Can some body help me on this?

    July 13th, 2010 at 4:01 am
38. Viju said:

    I’m an NRI. I have put some amount in NRO FD with SBI and the bank is deducting TDS as the interest income is above Rs 10000. The only other income i have in India is Rs 4000 pm interest income from my rented house (This house was brought using 100% NRE funds). Please letme know how can i get the deducted tax back. I do have a pan card showing NRI status.

    July 17th, 2010 at 4:33 am
39. sunil said:

    Hello
    I am a resident of Kuwait and i understand as per the DTAA Between India and Kuwait the rate of TDS is 10% on the interest earned from the NRO FDS. If interest earned on the NRO FDS eg is above 10lacs am i liable to pay additional income tax? Also pls advise if Nri’s can avail tax saving schemes. rgds

    August 13th, 2010 at 12:36 am

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