tds

TDS on Interest Income

Understanding TDS on interest income including bank interest, post office interest, and tax deduction rates.

Alok K Acharya & Associates
1 February 2025·Updated 31 August 20261 min read
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TDS on Interest Income#

TDS on Bank Interest#

  • TDS @ 10% if interest exceeds ₹40,000
  • Senior citizens: ₹50,000

Types of Interest#

Bank Deposits#

  • Savings account: No TDS below limit
  • Fixed deposits: TDS applicable

Post Office#

  • TDS applicable on interest

Corporate Bonds#

  • TDS @ 10%

Form 121#

Submit to avoid TDS if total income below taxable limit.

Conclusion#

Interest income above threshold attracts TDS.

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