TDS on Fixed Deposit Interest not claimed for Refund

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An NRI friend had TDS deducted on her fixed deposit interest without being informed. Now that her FD has matured, she has received numerous TDS certificates and wants to know if she can claim the entire refund. The advice given is that she can claim the refund by filing an income tax return after obtaining condonation of delay from the Commissioner of Income Tax. To prevent future TDS deductions, she should submit Form 15G if her income is below the taxable threshold.

Jacob Abraham

Jacob Abraham (Querist)
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14 March 2025 One of my friends, who is an NRI ( due to employment in Oman), deposited Rs. 3 Lakhs in the federal bank for 10 years on 11/03/2015. She became NRI from 2017 onwards. Bank started deduct TDS from accrued interest but didn't inform her. Now when FD matured, the bank paid her after deducting the entire TDS (Approx Rs. 1 Lakh) from the 2017-18 Assessment Year till 10/03/2025. Now they mailed her all ( 29 Nos.) Form 16A certificates, from Asst Year 2017-18 to Asst Year 2025-26. 29 forms together.

Kindly advise whether she can claim the entire TDS refund now.

CA J M Pattanayak

CA J M Pattanayak (Expert)
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14 March 2025 Yes the same can be claimed after getting a grant of delay of condonation from Commissioner of Income Tax. Then Income Tax return can be filed with claiming all the TDS amount.
Going forward, She can submit Form 15G, which states that income generated is below taxable level and bank will not deduct TDS in future.

Jacob Abraham

Jacob Abraham (Querist)
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14 March 2025 Thanks for the advise. Is there any time-limit for claiming TDS refund

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