Will the bank deduct TDS on my fixed deposit even if I have non-taxable income?


Will the bank deduct TDS on my fixed deposit even if I have non-taxable income?


Banks are liable to deduct TDS at 10% if the interest earned on any fixed deposit exceeds Rs. 10,000 in one financial year. However if you have a non taxable income, you must submit a declaration in a dedicated format through Form 15G declaring that your overall taxable income is nil. In that case since you make a submission of Form 15G, the bank will not deduct TDS from gains made on returns from fixed deposit investments. In case of a senior citizen, Form 15H needs to be submitted instead of Form 15G.


Should salaried employees be paying advance tax? If not who all should pay advance tax?


Salaried individuals do not need to file advance tax separately as advance tax is deducted by their companies or employers as tax deducted at source or TDS. Any income tax assessee whose income tax assessment is likely to exceeded Rs. 10,000 for that financial year is expected to file advance tax. All income from capital gains from stocks, any interest on fixed deposit schemes, capital gains on property etc are all eligible for advance tax… Once the income tax assessee estimates the total income for the year he must pay 30% of the tax by September 15, 60% by December 15 an the full 100% tax obligation by march 15 for each financial year. Any excess amount paid is returned by the IT department along with an interest of 6% per annum.


I have donated some money to an international charitable trust for Nepal earthquake. Can I hope to get tax deduction on my donations?


It is always a good thing to donate for a worthy cause so kudos to you for donating for people affected by the devastating Nepal earthquake. You have not mentioned the name of the charitable organization to which you have donated.
Any donation made to various trusts and approved charitable institutions qualify for deduction under Section 80G of the income tax Act but donations to foreign charitable trusts are not eligible for any tax deduction.

There is a list of charitable institutions that offer 100% Deduction while others offer 50% tax deduction. Check if the organization you donated for is listed under the same in Section 80G of the income tax act. As a point of reference for the future, you can consider donating with Indian charitable organizations to avail a tax deduction.


Can I submit form 15G/15H online?


Yes you can now submit Form 15G/15H online. CBDT has released new simplified forms both for form15G and 15H. You can download the forms either from the relevant bank’s website. The forms are also available at the income tax department’s website at http://www.incometaxindia.gov.in/Pages/downloads/most-used-forms.aspx. Once you submit your form electronically, you will be issued a Unique Identification Number (UIN) for your request


If someone is 59 while opting for a bank FD but will be 60 before maturity, does that mean he or she comes under the senior citizen bracket?


The age for senior and very senior citizen are fixed at 60 years and 80 years respectively. If you are between 60 to 80 years of age on 31st March of any year you will be considered a senior
citizen for that assessment year. For example if you attained 60 years of age on 31st March 2017, you will be considered as a senior for the financial year 2016-17.


Hi Dhyan,

Any interest you earn from your Fixed Deposit is a taxable income and not tax free, under the Income Tax Act 1961. The taxes will be levied on the individual as per their income tax slabs. Basically a fixed deposit will pay out the interest upon maturity and f the interest earned through such fixed deposits cross RS 10,000, the bank will deduct TDS.

However, if your total income including the interest from FD falls under the non-taxable bracket then you have to submit Form 15G with the bank. For senior citizens it’s Form 15H. If your banks deducts TDS even after you have submitted the required forms, then you can claim a refund when you file your returns.

Team BB


Hi Nisha,

Section 80G of the Income Tax Act primarily deals with donations made towards charity, with an aim to provide tax incentives to individuals indulging in philanthropic activities. This section offers tax deductions on donations made to certain funds or charities. An amount donated by an individual to an eligible charity can be claimed as a tax deduction while filing an income tax return.

All taxpayers (individuals/companies/Hindu Undivided Families) are eligible to make donations to charity under Section 80G and claim a deduction, subject to limits set down by the government. NRIs are also entitled to the benefits under Section 80G, provided their donations are to eligible trusts or institutions.

Individuals who wish to claim deductions under section 80G need to ensure that the organisation they are donating to falls under the purview of this Act. Only those donations made to registered and valid funds or charitable institutions qualify for suitable deductions. Trusts and charities need to be registered under Section 12A post which they qualify for the 80G certificate. Individuals are advised to check the credentials of an organization before donating to it.

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Hi Nisha,

A senior citizen is an individual resident (man or woman) who is 60 years old or more but below 80 years as on the last day of the previous year for which taxes are due. If you want to open a senior citizen Fixed Deposit then you will need to be a resident of India. NRI senior citizens too can open these FDs through NRE or NRO accounts. You also need to be above the age of 60 years at the time of opening the Fixed Deposit.

The features of the senior citizen Fixed Deposits remain the same as those of the regular term deposits. Some of these features are listed below.

• These deposits come with a tenure ranging from 7 days to 10 years depending on the bank.
• Nomination facilities are available on these deposits where depositors can declare a person as the nominee.
• The interest rates offered under these schemes are decided based on the duration of the term deposit.
• The interest earned is compounded on a quarterly basis and can be credited to an account or added to the maturity value of the FD.
• Once created, the deposit can be closed prematurely at any time. Such a premature withdrawal is not possible with tax saver FDs and may attract penalties with a regular FD based on the bank’s rules.
• The limits for the amounts that can be deposited under these schemes can range from Rs. 1 crore to higher amounts. These limits will be decided by banks and may vary from one bank to another.
• Tax saver fixed deposits which come with lock in periods of 5 years also offer special rates for senior citizens.

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BB Expert


Yes, You can stop the bank by submitting FORM H/G, If unable to submit form H/G the bank deduct TDS and deposit in your PAN number. You will get the TDS deducted back by filling your return on time.