Complete guide to TDS on fixed deposits in India
By Neelima Shankar
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What to do if you think that your TDS on fixed deposit is exempted?

If a fixed deposit holder finds that his total interest income from fixed deposits won't fall within the overall taxable limits, he should immediately inform this to the concerned bank and ask them not to deduct the TDS from his fixed deposit account. This can be done by submitting a form as per Income tax regulations. Individuals, claiming such exemption have to submit form 15H, companies form 15AA, association of companies form 15AA and trusts must provide details in form 15AA. The form 15AA can be obtained from the assessing officer of the income tax department. In case there is an amount deducted by way of TDS on the interest earned on you fixed deposit, prior to your submission of application of exemption with the required documents, it won't be refunded. However, in all such cases banks will issue TDS certificates which can be used by the fixed deposit holders, while filing his income tax. If you open a fresh fixed deposit account with the bank and want exemption you will have to submit details in a new form. The older one submitted for an existing fixed deposits won't suffice.

For any TDS deducted by the bank, it will issue a Form 16A which can be used to substantiate the facts, while filing the income tax returns.

Remember, that any exemptions claimed don't help you save tax, since in your final Income Tax Return you would end up paying the tax with possibly interest penalties.

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(Comments Posted : 6) Post Your Comments
1. I have a fixed deposit of Rs 5000.00.The fixed deposit is in Joint Name.1st name is my father and 2nd name is mine.The fixed deposit was made from my personal account and interest also be credited on my personal account . 1.Can the bank charges TDS on my name or my fathers name ??2. Is the income treated as my father's income or mine??
Rupak Banerjee (Posted: Apr 22, 2009)
2. I want clarification regarding TDS on interest income. Interest income upto 10000 is exempt from tax, but if interest income is (say) 11000 then 10% TDS will be deducted from (11000-10000=1000) or from entire 11000?
Sunil Yadav (Posted: Nov 7, 2008)
3. what is TDS?
how it is work with fixed deposit ?
ashish shrivastava (Posted: Oct 24, 2008)
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