How to Avoid TDS Deduction on Fixed Deposit Investments
Learn how to avoid TDS on Fixed Deposits (FD) with simple steps and tax-saving options.
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To avoid TDS deduction on your Fixed Deposit (FD), submit Form 15G or 15H (for senior citizens) to your bank if your total income is below the taxable limit. Ensure renewal of these forms annually. Alternatively, you can invest in tax-saving FDs under Section 80C to reduce your taxable income. Always verify current tax regulations.
FAQs & Answers
- What is TDS on Fixed Deposits? TDS (Tax Deducted at Source) on Fixed Deposits is a tax that banks withhold on the interest earned when it exceeds a certain limit as per the current income tax regulations.
- How do I submit Form 15G for TDS exemption? To submit Form 15G, you need to fill out the form and present it to your bank along with your Fixed Deposit details, ensuring it is done before the interest payout if your total income is below the taxable limit.
- Are there any investment options to avoid TDS on FD interest? Yes, investing in tax-saving Fixed Deposits under Section 80C allows you to reduce your taxable income, and if your total taxable income is below the limit, TDS may not apply.
- Do I need to renew Form 15G or 15H every year? Yes, it is necessary to renew Form 15G or 15H annually to ensure you keep your TDS exemption status as your income levels may change.