TDS on Interest Calculator — Section 194A (India FY 2024-25)

Formula

How this is calculated

Under Section 194A of the Income Tax Act, banks and financial institutions must deduct tax at source on interest income before crediting it to your account. TDS is triggered when the total interest credited by a single bank across all your accounts and FDs in a financial year reaches or exceeds the annual threshold — ₹40,000 for non-senior citizens and ₹50,000 for senior citizens (aged 60 or above) as of FY 2024-25. When the threshold is crossed, TDS is levied on the ENTIRE interest amount — not just the portion above the threshold.

The applicable TDS rate is 10% if you have submitted your PAN to the bank. Without a valid PAN on record, the rate doubles to 20% under Section 206AA. Always link your PAN to your bank to avoid the higher deduction. The TDS deducted is reflected in Form 26AS and your Annual Information Statement (AIS). If your total income is below the basic exemption limit, you can submit Form 15G (or Form 15H for seniors) to the bank to prevent TDS deduction in advance.

This calculator applies a single-bank perspective — the threshold is per bank per year. If you hold FDs at multiple banks, each bank applies its threshold independently, so your total tax liability may still be higher if you file an income tax return. TDS is a prepaid tax, not a final tax; any excess can be reclaimed as a refund when you file your ITR. Figures are estimates for FY 2024-25 (AY 2025-26); verify current thresholds with official Income Tax Department notifications.