Section 194A - TDS on Interest Income
Interest other than on securities (banks, co-ops, post offices)
IT Act 2025→Section 393, Chapter X (TDS, consolidated)full mapper →
Rate (Individual / HUF)
10%
Rate (Company / Firm)
10%
Threshold limit
₹50,000 p.a. (₹1,00,000 senior citizens)
Key rules
- Budget 2025 raised the threshold to ₹50,000 for the general case and ₹1,00,000 for senior citizens (from ₹40,000 / ₹50,000), effective FY 2025-26
- 10% TDS rate; 20% if PAN not furnished
- Interest on FD, RD, savings account (if above threshold) all covered
- Form 15G / 15H can be submitted to avoid TDS if income is below taxable limit
Frequently asked questions
Is TDS deducted on FD interest every year?▾
Yes. Banks deduct TDS at the time of credit/payment of interest. For multi-year FDs, TDS is deducted annually when interest is credited.
Can I avoid TDS under 194A?▾
Yes, by submitting Form 15G (individuals below 60 with income below taxable limit) or Form 15H (senior citizens). Forms must be submitted at the start of each financial year.
What if I have multiple FDs in the same bank?▾
The bank aggregates interest from all branches before applying the threshold. If total exceeds the applicable limit (₹1,00,000 for senior citizens, ₹50,000 for others), TDS is deducted.
Related TDS sections
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