How to Avoid TDS on Tax Saving FDs

You can avoid TDS on Tax Savings FDs as follows:

  1. By submitting Form 15G/15H - Banks deduct Tax (TDS) @ 10 % if the interest earned on FD exceeds Rs 10,000 in a financial year. If the investor's total income is below the taxable limit, he/she can provide declaration under Forms 15G (general) and 15H (senior citizen) to the bank requesting them not to deduct any TDS on the interest earned.
  2. By splitting total investment into separate banks FDs - Investor can split his/her total investment into separate banks FDs so that the interest earned from any of the FDs does not exceed the Rs. 10000 limit of TDS.
  3. By timing the FD - As banks deduct TDS on interest only if the interest amount for an FD greater than Rs.10,000 per financial year, the Investor can avoid TDS by timing his/her FD in such a way that interest earned on such FDs in any financial year does not exceed Rs. 10000.
  4. Open FD in HUF's Name - You can register as an HUF (Hindu Undivided Family) which has its own identity that is different from an individual. HUF has a separate PAN and any income generated by an HUF will be taxed independently. So interest income in your name and in the name of HUF will be treated separately and TDS will be calculated and deducted accordingly.
  5. Make FD in the name of Senior Citizen Parents - You can make FD in the name of your senior citizen parents, as for senior citizen (who are 60 years or older), TDS will only be deducted if the interest income exceeds Rs.50,000 in a given financial year as per Union Budget 2018.

Important Points

  • FD account holder should furnish his/ her PAN information to the bank. If he/ she has not submitted valid PAN with the bank, then the bank will deduct TDS at a higher rate of 20%.
  • If an FD account holder forgets to submit the self-declaration form 15G/ 15H and the bank deducts TDS then there is no need to worry. If this happens, he/ she can claim refund from the Income Tax department while filing the Income Tax Returns.

Bank Tax Saving Fixed Deposit Scheme

Allahabad BankAllahabad Up Gramin Bank
Andhra BankAndhra Pradesh Grameena Vikas Bank
Andhra Pragathi Grameena BankArunachal Pradesh Rural Bank
Assam Gramin Vikash BankAxis Bank
Bandhan BankBangiya Gramin Vikash Bank
Bank Of BarodaBank Of India
Bank Of MaharashtraBaroda Gujarat Gramin Bank
Baroda Rajasthan Kshetriya Gramin BankBaroda Up Gramin Bank
Bihar Gramin BankCanara Bank
Catholic Syrian BankCentral Bank Of India
Central Madhya Pradesh Gramin BankChaitanya Godavari Grameena Bank
Chhattisgarh Rajya Gramin BankCity Union Bank
Corporation BankDcb Bank
Dena BankDena Gujarat Gramin Bank
Dhanalakshmi BankEllaquai Dehati Bank
Federal BankGramin Bank Of Aryavart
Hdfc BankHimachal Pradesh Gramin Bank
Icici BankIdbi Bank
Idfc First BankIndian Bank
Indian Overseas BankIndusind Bank
Jammu And Kashmir BankJammu And Kashmir Grameen Bank
Jharkhand Gramin BankKarnataka Bank
Karnataka Vikas Grameena BankKarur Vysya Bank
Kashi Gomti Samyut Gramin BankKaveri Grameena Bank
Kerala Gramin BankKotak Mahindra Bank
Langpi Dehangi Rural BankLaxmi Vilas Bank
Madhya Bihar Gramin BankMadhyanchal Gramin Bank
Maharashtra Gramin BankMalwa Gramin Bank
Manipur Rural BankMeghalaya Rural Bank
Mizoram Rural BankNagaland Rural Bank
Narmada Jhabua Gramin BankOdisha Gramya Bank
Oriental Bank Of CommercePallavan Grama Bank
Pandyan Grama BankPaschim Banga Gramin Bank
Pragathi Krishna Gramin BankPrathama Bank
Puduvai Bharathiar Grama BankPunjab And Sind Bank
Punjab Gramin BankPunjab National Bank
Purvanchal Gramin BankRajasthan Marudhara Gramin Bank
Saptagiri Grameena BankSarva Haryana Gramin Bank
Sarva Up Gramin BankSaurashtra Gramin Bank
South Indian BankState Bank Of India
Sutlej Kshetriya Gramin BankSyndicate Bank
Tamilnad Mercantile BankTelangana Grameena Bank
The Nainital BankTripura Gramin Bank
Uco BankUnion Bank Of India
United Bank Of IndiaUtkal Grameen Bank
Uttar Banga Kshetriya Gramin BankUttar Bihar Gramin Bank
Uttarakhand Gramin BankVananchal Gramin Bank
Vidharbha Konkan Gramin BankVijaya Bank
Yes Bank 
Disclaimer: The Saving Fixed Deposit Interest Rates keep on changing. You are advised to check the interest rates with banks before making your FD.      Source: Bank Websites