TDS deducted from FD Principal

Dear All,

My friend's account is in ICICI Bank.
Total FD amount is 17,00,000/-
She has one FD of 1,50,000/- , after a few months, the principal amount was deducted from 150000 to 146540.
When contacted the bank, they said it must be the TDS amount.
This happened in October, 2023. On checking the app, she still can't find the TDS certificate (It says no TDS was deducted during this period)

I want to ask:
1. Can a bank deduct TDS from the Principal amount?
2. What step is to be taken now? If the bank denies the TDS deduction on their end.

Replies (2)
Quick Summary
A user's friend experienced a deduction from their Fixed Deposit principal amount, which the bank claims is TDS. However, the bank's app shows no TDS deducted, and the user is questioning if TDS can be taken from the principal. The advice given is to formally complain to the bank in writing and get a written response. Banks can only deduct TDS on the interest earned from an FD, not the principal amount itself, especially if a Form 15G has been submitted.

should not happen. make a complaint in writing and let the bank give you a proper written response. 

Bank can deduct TDS on your interest on FD after 2.50 lakh on which is 17,00,000.

they can't deduct TDS on principal then what is use of FD.

do submit 15g form with this form they do not deduct TDS on interest. bank will give you form 15g prefild

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