TDS stands for Tax deducted at source. The interest earned from FD is taxable. TDS on FDs can range from 0% to 30%, depending on the income tax bracket of the investor. Generally, NBFCs and banks deduct 10% TDS if the interest earned is more than Rs.10,000 in a year, provided your PAN details are available with them. But, in case you do not provide your PAN details to your financial institution, 20% TDS will be deducted. If your total income is below the minimum tax slab of 10%, you can claim a refund of the TDS deducted. To avoid TDS deduction, you can submit the Form 15G to your NBFC or bank, stating that you don’t fall under the minimum tax slab. If you are a senior citizen, the requisite form to avoid TDS is 15H. On the other hand, if you fall in the higher tax bracket (20% or 30%), you will have to pay the extra tax over and above the TDS deducted by your NBFC or bank.