For Fixed Deposits / Recurring Deposits, TDS is not applicable on the interest earned up to Rs. 50,000 (Rs. 1,00,000 for senior citizen) under section 393(1) (earlier 194A). However, TDS will be applicable if the interest received or likely to be received, during the financial year, exceeds Rs. 50,000 (Rs. 1,00,000 for senior citizen).

All customers other than a company, firm or non-resident, whose tax on their estimated total income during the year will be nil, can submit a self-declaration form in the prescribed Form 121 (earlier known as forms 15G/15H) for the purpose of availing TDS exemption under section 393(1) (earlier 194A) of the Income Tax Act in accordance with the provisions of section 393(6) (earlier 197A). A fresh Form 121 (earlier known as forms 15G/15H) is required to be submitted for each Financial Year. Form 121 (earlier known as forms 15G/15H) should be submitted at the time of creation of FD or beginning of Financial Year whichever is earlier. Further, fresh Form 121 (earlier known as forms 15G/15H) needs to be submitted for all subsequent deposit(s) booked during the Financial Year.

Following are the limits for accepting Form 121 (earlier known as forms 15G/15H). In case the limits are breached, Form 121 (earlier known as forms 15G/15H) will not be considered.

*Assuming customers opted for new tax regime as per Income Tax Act,2025. In case of otherwise, customer will declare to the bank in writing.

If the interest amount is not sufficient to recover TDS, the amount is taken from the principal of the FD.

The Bank provides the TDS certificate i.e. Form 131 (earlier known as Form 16A) to you on quarterly basis on or before the following dates:

Yes, in case of reinvestment FDs, the interest reinvested is calculated post TDS recovery. Hence, the final maturity amount for reinvestment FDs would vary to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.

Following are the implications if you book an FD without PAN:

• TDS at a higher rate of 20% will be applied on resident FDs with interest income of Rs. 50,000/- (Rs. 1,00,000/- in case of Senior Citizen) or above during the Financial Year.
• No TDS credit from the Income Tax department.
• No TDS certificate will be issued (As per CBDT circular no:03/11)
• Form 121 (earlier known as forms 15G/15H) and other exemption certificates will be invalid.

TDS is deducted at the time of interest payout and compounding. In addition, TDS is also deducted on interest accrued (but not yet paid) at the end of Financial Year i.e. on 31st March.

Yes, TDS on RD is deducted as per the income tax guidelines under Section 393(1) (earlier 194A) w.e.f. 01st June 2015.

As per Rule 159 (earlier 114B) of Income Tax Rules read with section 262 (earlier 139A) of Income Tax Act, you are required to quote a valid PAN for the purpose of creating Fixed Deposit (s)/Recurring Deposit(s) of more than Rs. 50,000 in a single day or if the aggregate amount (for all the FDs & RDs created in a financial year) exceeds Rs. 5,00,000 during the financial year. In case, you do not have a PAN, then you are required to furnish the declaration in Form No 97 (earlier known as Form no 60)

If customer is having inoperative PAN (i.e. PAN is not linked with Aadhar), then TDS will be deducted at higher rate @ 20% on interest of term deposits.

Yes, If PAN is not linked with Aadhaar, then PAN status will become inoperative, and benefit of Form 121 (earlier known as forms 15G/15H) will not be granted and TDS will be deducted at higher rate @ 20%.