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TDS on SBI FD - TDS Rates and Rules in 2025
Fixed deposits (FDs) are one of the safest and most common ways to save money with minimal risk and safe returns. They provide you with guaranteed returns and minimal risks. However, many investors miss one important aspect. The interest earned from a fixed deposit can be taxed; TDS on FD SBI is charged on the interest earned. If you are using the State Bank of India (SBI), understanding how tax deducted at source (TDS) works is important.
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- TDS on SBI FD - TDS Rates and Rules in 2025
The bank deducts TDS (Tax deducted at source) before your interest is added to your account, especially when your interest income crosses a specific limit. This article informs you of all you need to know about the SBI FD TDS rate and how you can legally avoid or manage these deductions.
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7.1% (TAX-FREE)
Returns After Tax
7.1%
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*For annual premium upto ₹5 Lacs
What is TDS on FD SBI?
TDS is an abbreviation that represents tax deducted at source. This concept means that SBI deducts a small amount of the interest you earn on your fixed deposit (FD) as tax before paying the rest to you. The process is done to ensure tax compliance and to prevent tax evasion.
If the SBI FD interest you earn over a year is Rs 50,000, then SBI (State Bank of India) will deduct TDS. This limit is applied to both regular citizens and senior citizens. The amount the bank deducts is sent to the income tax department under your name and PAN.
For example, if your FD earns Rs. 60,000 in interest this year, SBI deducts TDS on the full Rs. 60,000 and credits the rest to you.
FD interest rates India have fallen consistently over the last 12 years.
TDS Rules on Fixed Deposits (FDs)
As per the Income Tax Act, 1961, these are the basic rules for Tax Deducted at Source (TDS) on FD interest:
- The bank or NBFC deducts TDS directly before giving you the interest.
- TDS is applied when the interest is added to your account or at the time of maturity, whichever comes first.
You also get a TDS certificate (Form 16A) from the bank or NBFC. This shows how much tax was deducted from the interest earned on your FD.
All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
How to Avoid TDS on SBI FDs
If your total income is below the taxable limit, you can stop SBI from deducting TDS by submitting a form. The two most common forms used are:
-
Form 15G:
Form 15G is for people below 60 years
-
Form 15H:
Form 15H for senior citizens who are 60 years and above
You need to submit these forms at the beginning of every financial year. You can do it online using SBI internet banking, the Yono app, or by visiting your local SBI branch.
Only use these forms if your total income is below the taxable limit. If you give false information to avoid TDS on FD, SBI will lead to penalties. Use these forms only if you're genuinely eligible.
How to Check and Claim TDS
If the bank has already deducted TDS on FD SBI, you can check it in two ways:
-
Bank statement or a Passbook:
look for the TDS entry next to your FD interest, which is usually marked clearly
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Form 26AS:
Form 26AS is a tax form that can be downloaded from the income tax website. It shows all TDS deductions made in your name.
If your income is not taxable, you can get the deducted TDS back when you file your income tax return (ITR), and the government will refund the extra tax to your bank account.
Make sure your PAN is always linked to your bank account to avoid higher taxes and deductions and to track your interest income regularly.
Conclusion
Knowing how TDS on FD SBI works can save you from losing money to unexpected and unknown tax deductions. The SBI FD TDS rate is 10% with PAN and 20% without PAN. By submitting Form 15G or 15H, you can avoid this deduction if your income is not taxable. Also, tracking your interest and TDS details makes it easier to claim refunds and file your tax return correctly. With a plan, you can keep your FD earnings safe and tax-efficient.
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FAQs
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What is the TDS rate for SBI Fixed Deposits?
The SBI FD TDS rate is 10% if you have given your PAN to the bank. If you have not, it goes up to 20%. -
Can I stop SBI from deducting TDS?
Yes. If your total income is below the tax limit, you can fill out and submit 15G or Form 15H to the bank every year. -
How can I check if SBI deducted TDS from my FD?
Check your bank statement, or you can log into the Income Tax portal and download Form 26AS. -
Will SBI deduct TDS if my FD earns Rs. 40,000 in a year?
No. TDS is only deducted if your annual FD interest is more than Rs. 50,000. -
Is TDS my final tax on FD interest?
Not always. You may need to pay more tax or get a refund based on your total income when filing your ITR.
*All savings are provided by the insurer as per the IRDAI approved
insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per
applicable tax slabs post 31st march 2023
#Discount offered by insurance company
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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