When does the bank debit TDS (Tax Deposited at Source) on a Fixed Deposit?

TDS is deducted on the interest earned on your deposits if the aggregate interest (including Fixed Deposits and Recurring Deposits) exceeds the prescribed threshold limit in a financial year:

₹50,000 for customers other than Senior Citizens
₹1,00,000 for Senior Citizens

TDS is also deducted on unpaid interest accrued at the end of a financial year on 31^st March

Examples:

For customers other than Senior Citizens

Total interest earned (including Fixed and Recurring Deposits) in a financial year is ₹45,000. TDS will not be deducted since the interest amount is below the threshold limit of ₹50,000.
Total interest earned (including Fixed and Recurring Deposits) in a financial year is ₹55,000. TDS will be applicable as the interest amount has exceeded the threshold limit of ₹50,000. At the prevailing TDS rate of 10%, TDS deducted will be ₹5,500.

For Senior Citizens

Total interest earned (including Fixed and Recurring Deposits) in a financial year is ₹95,000. TDS will not be deducted since the interest amount is below the threshold limit of ₹1,00,000.
Total interest earned (including Fixed and Recurring Deposits) in a financial year is ₹1,10,000. TDS will be applicable as the interest amount has exceeded the threshold limit of ₹1,00,000. At the prevailing TDS rate of 10%, TDS deducted will be ₹11,000.

A TDS certificate for tax deducted during a quarter will be issued within statutory due date likely in the month following the respective quarter.

Example: If TDS is deducted during the quarter from April to June 2025, the TDS certificate will be sent in July 2025. TDS credit in Form 168 (earlier Form 26AS) can also be downloaded online from Income Tax Portal.

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