Tax deducted at source (TDS) on Fixed Deposits can range from 0% to 30%, depending on your income tax bracket.
• If your interest earned is more than Rs.10,000 in a year, the TDS deducted is:
• 10% if your PAN details are provided
• 20% if your PAN details are not provided
• If your total income is below the minimum slab, you can claim a refund of the TDS deducted.
To avoid TDS deduction,
• Submit Form 15G to your NBFC or bank, if you fall under the minimum tax slab
• Submit Form 15H if you’re a senior citizen
If you fall in the higher tax bracket (20% or 30%), you need to pay extra tax over and above the TDS deducted by your NBFC or bank.