In this article, We will discuss about How to Claim TDS Refund on Fixed Deposit. Banks Deduct the TDS on the Fixed Deposit so its Refundable when your tax liability is less than the TDS Amount. So in this Guide we will learn about How to Claim TDS Refund on Fixed Deposit.
What is TDS on Fixed Deposit
When you are doing Fixed Deposit in a Bank then after certain limit of the Interest Amount on Fixed Deposit, Banks Deduct the TDS and deposit to Government against your PAN Card Number. If your Total Taxable Income is less than 5 lakh rupees in a year then you can easily Claim back TDS Refund by Filing Income Tax Return.
TDS Limit on the Fixed Deposit Interest
TDS is deducted under Section 194A and it includes the provision for TDS deduction on interest earned on sources other than securities.
- Suppose, you have FD in any bank and if it is within a single bank and you receive more than ₹40,000 interest from it, then only the bank deducts TDS in your account.
- For senior citizens this limit goes up to ₹ 50000.
- And if you have attached a PAN card to the bank account, then the bank will deduct TDS at the rate of 10% and if you have not deposited the PAN card in the bank then the bank will deduct TDS at the rate of 20% and you will not be able to claim refund for the same.
How to Save TDS on Fixed Deposit
- If your income is less than Rs 2.5 lakh then you can submit Form 15H and Form 15G in the bank and by doing this you can avoid your TDS.
- And you can also avoid TDS in this way that by not getting all the FD done in one bank, you can divide the FD in multiple banks.
How to Claim TDS Refund on Fixed Deposit
Generally everyone should know that how can you claim or get the refund of TDS :
Suppose, your TDS has been deducted by the bank, then how will you know, then in this situation you can do two things.
- In the month of March, the bank provides you TDS certificate on your email ID or you can also go personally and collect it from the bank.
- To claim refund, you will have to file ITR 1 in which you will have to show minimum income of Rs 2.5 lakh to Rs 5 lakh, due to which your tax gets nullified and your TDS which has been deducted on FD, you get as a refund.
We conclude the article if you are required to contact your Income Tax officer in writing with all the necessary details and documents.