Is FD interest taxable if I haven't received it?

Yes. Interest on cumulative FDs accrues each year and should be offered to tax yearly, even though it is paid at maturity.

Can NRIs avoid tax on FDs?

Interest on NRE and FCNR deposits is tax-free while you are non-resident. NRO deposit interest is taxable, with 30% TDS plus surcharge and cess, subject to treaty relief.

Does TDS mean my tax is fully paid?

Not if you are in a higher slab — 10% TDS covers only part of the tax at 20% or 30%; pay the balance as advance tax or self-assessment tax.

Can I rely on this calculator's result for filing?

Use it as a planning estimate. The final figure depends on the tax year's rules and your exact documents, so a CA should review it before you file or pay.

Does the calculator store my data?

No. The calculation runs in your browser and nothing you type is saved. If you want a CA to review it, share your documents through our checklist-led process.

Investment calculator

FD / Fixed Deposit Returns

Bank FDs usually compound quarterly: maturity = P × (1 + r/4)^(4 × years). Interest is taxable every year at your slab rate as it accrues, even on cumulative FDs. Banks deduct 10% TDS when interest from that bank exceeds ₹50,000 in a year (₹1 lakh for senior citizens), unless you submit Form 15G/15H.

TDS threshold (banks): ₹50,000 / ₹1 lakh seniors
Senior citizen deduction: ₹50,000 (80TTB, old regime)
Interest taxed: Every year, at slab rate

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Fixed Deposit (FD) Returns

Estimate FD maturity value and tax on interest income.

Fixed Deposit

Principal amount (₹)

Annual interest rate (%)

Tenure (years)

Compounding frequency

Your marginal tax rate (%)

Maturity amount

₹7,24,974.01

Total interest earned

₹2,24,974.01

Tax on interest (incl. cess)

₹70,191.89

Net interest after tax

₹1,54,782.12

TDS Reference

Annual interest: ₹44,994.80 | TDS @10% applicable if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Estimated TDS deducted: ₹22,497.40

FD interest is taxed at your applicable slab rate each year on accrual basis (not just at maturity). Submit Form 15G/15H to bank if income is below taxable limit to avoid TDS deduction. Tax-saving FDs (5-year) qualify for 80C deduction under old regime.

Tax rules for FD interest

Rule	Detail
Taxed at	Slab rate, on accrual basis
TDS rate	10% (20% without PAN)
TDS threshold (banks, from April 2025)	₹50,000; ₹1,00,000 for senior citizens
Senior citizens	80TTB deduction up to ₹50,000 on interest (old regime)
Avoid TDS	Form 15G (below 60) or 15H (60+) if total tax is nil
Tax-saver FD	5-year lock-in; principal under 80C (old regime)

Post-tax return

A 7% FD gives about 4.9% after tax in the 30% slab (7% × (1 − 0.312)). Compare this with alternatives on a post-tax basis, especially debt mutual funds, which are now also taxed at slab rates.

Worked example: ₹5 lakh for 3 years at 7%

1Quarterly compounding: ₹5,00,000 × (1 + 0.07/4)^12 = ₹6,15,720.
2Total interest = ₹1,15,720, taxed year by year as it accrues.
3In the 30% slab, tax ≈ ₹36,105 over three years.

Post-tax gain ≈ ₹79,600.

Official sources

incometaxindia.gov.in

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