Meaning
TDS on FD Interest means the bank deducts tax at source on the interest earned from your fixed deposit.
Definition
If FD interest crosses the government-specified limit in a financial year, banks must deduct TDS before crediting the interest.
How It Works
The deducted tax is added to your Form 26AS, and you can claim refunds if excess TDS is applied.
Why It Matters
- Helps in tax compliance
- Reduces tax burden at year-end
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