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TDS · TDS ON COMMON PAYMENTS

TDS on FD Interest: Bank Deductions, Limits and Tax Credit

Understand bank interest thresholds, why TDS is not final tax and how to resolve missing or excessive deductions.

By Vyapar Setu Online | TDS on common payments · 27 October 2026

An Indian investor reviewing investment statements at home

TDS learning series · TDS on common payments · Article 12 of 25

Your bank may deduct tax even when your final tax bill is zero. It may also deduct nothing when you still owe tax. Both can be correct because TDS and income-tax liability use different tests.

Current-year guide: Reviewed 27 October 2026 for Tax Year 2026–27 under the Income-tax Act, 2025 and Income-tax Rules, 2026. Familiar old section and form names are identified for comparison. Earlier-period obligations retain their applicable rules; read the dates and exceptions in this guide.

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For learning and preparation. Verify the rules and official guidance for your period and circumstances before making a filing or tax decision.

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