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Section 194A & Form 15G/15H

FD / RD Interest TDS Calculator

Compute bank TDS deduction on Fixed & Recurring Deposits and check eligibility for Form 15G / 15H zero-TDS declaration.

Deposit & Interest Details

Total TDS Deducted by Bank
₹6,500.00

TDS Triggered (Interest exceeds threshold)

Form 15G / 15H Eligible to Avoid TDS

Section 194A TDS Summary Bank Interest

Total Interest Earned ₹65,000.00
Statutory TDS Threshold ₹40,000.00
TDS Rate (10%) - ₹6,500.00
Net Interest Credited to Bank Account ₹58,500.00

Understanding TDS on Fixed Deposits Under Section 194A

Banks, co-operative banks, and post offices are legally required to deduct **Tax Deducted at Source (TDS)** under **Section 194A** of the Income Tax Act when interest income from Fixed Deposits (FD) and Recurring Deposits (RD) exceeds statutory annual limits.

Frequently Asked Questions on FD TDS

What is the difference between Form 15G and Form 15H?

**Form 15G** is a self-declaration for resident individuals below 60 years whose total taxable income is zero. **Form 15H** is for senior citizens (aged 60+) whose net tax liability for the year is nil. Submitting these forms instructs the bank to deduct **0% TDS**.

Statutory Legal Framework & Compliance Guidelines (Fd Rd Tds Calculator)

In the Indian taxation ecosystem administered by the Central Board of Direct Taxes (CBDT) and the Goods and Services Tax Network (GSTN), strict compliance with statutory calculation rules is mandatory under the Income Tax Act, 1961, amended via the Finance (No. 2) Act, 2024.

Taxpayers, chartered accountants, CFOs, and small business owners must ensure that every claim, deduction, tax rate calculation, and return reconciliation strictly matches the prescribed standard operating procedures. Miscalculations or delayed compliance lead to automated system notices, interest under statutory provisions, and potential disallowance of credits.

Step-by-Step Practical Calculation Guide

  1. Identify Taxable Base / Gross Turnover: Determine the exact gross receipts, gross salary, invoice turnover, or capital transaction value for the applicable financial year.
  2. Apply Eligible Exemptions & Thresholds: Deduct standard statutory exemptions, non-taxable allowances, threshold limits, or basic cost indexation where applicable.
  3. Compute Net Tax Liability: Calculate the applicable progressive tax slab or flat statutory rate, accounting for relevant cess (4% Health & Education Cess) or applicable surcharges.
  4. Reconcile with Portal Records: Cross-verify computed amounts with official government portal filings before submitting ITR or GST returns to prevent automated mismatch notices.

Top Compliance Mistakes to Avoid

  • • Claiming Disallowed Items: Attempting to claim deductions or input credits barred under statutory provisions (such as blocked credits or expired time limits).
  • • Ignoring Due Dates: Delaying payments beyond the 20th of the month or prescribed quarterly advance tax deadlines, which immediately triggers mandatory interest accruals.
  • • Data Mismatches: Discrepancies between internal accounts, Form 26AS/AIS/TIS records, and GSTR-2B automated statements.
  • • Incomplete Record Keeping: Failure to retain statutory invoices, payment proofs, and challan acknowledgments for the minimum statutory period of 6 to 8 years.
Official Government Verification

Direct Taxpayer Portal Access

Verify live taxpayer registration, return filing status, and challan receipts directly on official government servers.

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