Finance & InvestmentEntry № 01.34Documented Formula

TDS on Fixed Deposit Interest Calculator (India)

Computes Tax Deducted at Source (TDS) under Section 194A on cumulative bank FD interest exceeding statutory ₹40,000 (general) or ₹50,000 (senior) limits.

Popular Searches:What is the threshold for TDS on FD interest?How to avoid TDS on FD interest using Form 15G/15H?TDS rate if PAN is not submitted (20%)
Section 194A TDS on Bank FD Interest Engine (India)
Statutory CBDT Thresholds
65,000
TDS Tax Deducted by Bank
6,500

Applicable at 10% since interest exceeds ₹40,000 threshold.

Gross FD Interest65,000
Net Interest Credited to Account58,500
Mathematical Proof & FormulaStandard Mathematical Notation

How This Calculation Formula is Formulated

Calculates Tax Deducted at Source (TDS) on bank Fixed Deposit interest under Section 194A of the Indian Income Tax Act based on statutory thresholds and PAN registration.

Standard Algebraic Representation
TDS = 10% · Annual Interest (if Interest > ₹40,000 general / ₹50,000 senior)
Documented algebraic formula with transparent derivation and reference notes.

Variable Definitions & Measurement Units

Interest
Annual Accrued Interest
Total interest earned across bank branches in FY.
Threshold
Exemption Threshold
₹40,000 for non-seniors, ₹50,000 for senior citizens (≥60 yrs).
Rate
TDS Deduction Rate
10% with PAN, 20% without PAN.
Step-by-Step Calculation Example

₹65,000 FD Interest for Non-Senior Citizen

A 35-year-old taxpayer with valid PAN earns ₹65,000 interest from bank fixed deposits in a financial year.

1
Threshold Verification
₹65,000 > ₹40,000 statutory limit
TDS applies on entire interest
2
TDS Deduction (10%)
₹65,000 × 10% = ₹6,500
Tax withheld by bank
3
Net Payout
₹65,000 − ₹6,500 = ₹58,500
Net interest credited
Conclusion: The bank deducts ₹6,500 TDS under Section 194A and credits ₹58,500 net interest to the depositor's account.
In-Depth Editorial Analysis

Form 15G and 15H Rules

If your total taxable income (including FD interest) is below the basic tax exemption limit, you can submit Form 15G (under 60 years) or Form 15H (senior citizens) to the bank to prevent TDS deduction.

Note that TDS is merely a withholding tax. The entire FD interest must still be reported under 'Income from Other Sources' in your Income Tax Return and taxed at your marginal income slab rate.

Frequently Asked Questions

Frequently Asked Questions About TDS on Fixed Deposit Interest Calculator (India)

What happens if I don't submit my PAN to the bank?

If PAN is not linked to your bank account, TDS is deducted at the punitive rate of 20% under Section 206AA, and the credit will not reflect in your Form 26AS.

Is TDS deducted on company FDs at the same threshold?

No. For non-banking financial companies (NBFCs), the Section 194A TDS threshold is only ₹5,000 per financial year.

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Deterministic Precision & 100% Client-Side Privacy

All calculations execute in your local browser using IEEE 754 double-precision floating-point arithmetic. Your figures and financial metrics remain private and are never uploaded or saved to any cloud servers.