# Tax on FD Interest Calculator FY 2026-27: TDS and Slab Tax > Tax on FD interest calculator for FY 2026-27: tax on fixed deposit interest at your slab, the TDS the bank will cut and if Form 15G or 15H helps. Source: https://trykosh.com/tools/tax-on-fd-interest-calculator Free tool - Capital gains # Tax on FD interest calculator with TDS Fixed deposit interest is taxed at your slab rate, and banks deduct TDS above a threshold. See the real tax on your FD, the TDS, and whether you'll owe more or get a refund. Rules checked 25 October 2026Free - no sign-upRuns in your browser Tax on your FD interest INR 0 On INR 71,859 interest this year - effective 0% TDS the bank deducts**INR 7,186** Refund via ITR**INR 7,186** Post-tax yield**7%** Interest kept **INR 71,859** Interest earned this year (compounded quarterly) INR 71,859 Your tax without the FD INR 0 Your tax with the FD INR 0 Tax on the interest INR 0 TDS threshold for you (per bank, per year) INR 50,000 TDS at 10% INR 7,186 Your tax is nil after the 87A rebate, but your income is above the basic exemption, so Form 15G isn't available. Claim the TDS back in your return. ## Upload your statement and Kosh does this for you. Upload your statements and Kosh keeps a running estimate of the tax on your gains, so March holds no surprises. [Start free](/signup?via=tool-tax-on-fd-interest-calculator) ## How the tax on FD interest calculator works The calculator works out the interest your FD earns in a year, compounded quarterly as most banks do. FD interest is 'income from other sources', added to your salary or pension and taxed at your slab. The tax shown is the difference between your total tax with and without the FD, so rebates and slab jumps are handled correctly. Banks deduct TDS at 10% when the interest you earn from that bank in a year crosses INR 50,000 (INR 1 lakh for senior citizens). The limit is per bank, across all your FDs and RDs there. Without a PAN, TDS is 20%. TDS isn't your final tax. If your slab rate is higher than 10%, you pay the difference through advance tax or when you file. If your tax is nil, for example because the new regime's rebate covers income up to INR 12 lakh, the TDS comes back as a refund. Seniors in the old regime get a deduction of up to INR 50,000 under section 80TTB on interest from banks and post offices; the calculator applies it. In the new regime, 80TTB isn't available. Tax on FD = tax(income + interest) − tax(income) Yearly interest deposit x ((1 + rate/400)⁴ − 1) TDS 10% of interest above INR 50,000 (INR 1 lakh for 60+), per bank ## Worked example: Mr Iyer, 67, with INR 25 lakh in FDs Mr Iyer, a retired bank officer in Chennai, draws a INR 6 lakh pension and holds INR 25 lakh in FDs at 7.5% with one bank. They earn about INR 1,92,840 this year. After the INR 75,000 standard deduction his income is within INR 12 lakh, so the new regime's rebate makes his tax nil. But his interest is above the INR 1 lakh senior TDS limit, so the bank would deduct INR 19,284. Submitting Form 15H in April avoids that. Tax on your FD interest INR 0 On INR 1,92,840 interest this year - effective 0% TDS the bank deducts**INR 19,284** Refund via ITR**INR 19,284** Post-tax yield**7.5%** Interest kept **INR 1,92,840** Interest earned this year (compounded quarterly) INR 1,92,840 Your tax without the FD INR 0 Your tax with the FD INR 0 Tax on the interest INR 0 TDS threshold for you (per bank, per year) INR 1,00,000 TDS at 10% INR 19,284 Your total tax is nil, so you can give the bank Form 15H at the start of the year and avoid this TDS. [Load this example into the calculator ->](?deposit=2500000&rate=7.5&salary=600000&age=senior#calculator) ## Good to know - Interest on cumulative FDs is taxable each year as it accrues, not only at maturity. Banks deduct TDS on accrued interest too. - Spreading FDs across banks doesn't reduce tax; it only changes who deducts TDS. All interest still has to be shown in your return. - Form 15G (below 60) works only if your income is within the basic exemption; Form 15H (60 and above) works if your final tax is nil. Submit at the start of each financial year. - Interest on tax-saver FDs is taxable too. Only the deposit qualifies for 80C, and only in the old regime. ## Frequently asked questions How much tax do I pay on FD interest? FD interest is taxed at your slab rate, the same as salary. In the new regime that ranges from 0% to 30%, plus 4% cess. If your total income is within INR 12 lakh, the 87A rebate can make the tax nil. What is the TDS limit on FD interest for FY 2026-27? INR 50,000 a year per bank for people below 60 and INR 1 lakh for senior citizens. Banks deduct 10% TDS above that, or 20% if they don't have your PAN. Is TDS on FD my final tax? No. TDS is only 10%. If your slab is 20% or 30%, you owe the difference. If your total tax is lower than the TDS, you get a refund when you file your return. How can senior citizens save tax on FD interest? In the old regime, section 80TTB gives a deduction of up to INR 50,000 on deposit interest. In the new regime, the INR 12 lakh rebate often makes tax nil for pensioners. If your tax will be nil, submit Form 15H so the bank doesn't deduct TDS. Do I need to show FD interest in my ITR if TDS is deducted? Yes. All interest must be reported under income from other sources, whether or not TDS was deducted. Check your AIS, which lists interest reported by every bank. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) - [Reserve Bank of India](https://www.rbi.org.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. 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