FD Interest Tax & TDS Calculator
See the tax and TDS on your fixed deposit interest, whether the bank will deduct it, and your real return after tax and inflation. Runs in your browser; nothing is uploaded.
Understanding the calculation
- Interest
- Simple: deposit times rate. Compounded quarterly: deposit times ((1 + rate/4) to the power 4, minus 1), the usual way banks pay it.
- TDS
- 10% of the interest a bank pays you once it goes above Rs 50,000 (Rs 1,00,000 for seniors). This calculator applies it to the total interest from that bank.
- Real return
- (1 + post-tax return) divided by (1 + inflation), minus 1. A negative figure means the deposit lost purchasing power after tax.
Common questions
Is FD interest taxable?
Yes. Interest on fixed deposits is added to your income and taxed at your slab rate, whether or not the bank deducts TDS. You report it under income from other sources, and it is taxable each year as it accrues, even if the FD has not matured.
When does the bank deduct TDS on FD interest?
A bank deducts TDS at 10% when the interest it pays you in a financial year goes above Rs 50,000, or Rs 1,00,000 if you are a senior citizen (60 or older). The limit applies to each bank, and it counts interest across that bank's deposits. If you have not given your PAN, the rate is higher.
What are Form 15G and 15H?
They are declarations you give the bank so it does not deduct TDS, because your total income is low enough that you owe no tax. Form 15G is for individuals below 60 and Form 15H is for senior citizens. Submitting one when you do owe tax is a mistake, so use it only if your tax for the year really is nil.
Is TDS the final tax?
No. TDS is a prepayment at a flat 10%. Your actual tax is at your slab rate, so if your slab is 30% you still owe the rest when you file, and if your tax is lower than the TDS you get the difference back as a refund.
What is the post-tax return?
The interest you keep after tax, as a percentage of your deposit. It is lower than the headline rate, and the higher your slab, the bigger the gap. Comparing it with inflation shows whether the deposit is growing your purchasing power.
Does this cover every kind of deposit?
It applies the bank, co-operative bank and post office thresholds under Section 194A. Interest from company deposits, bonds and other sources has different rules, so treat the result as a guide for bank FDs.