Tds on 3 year fd

Experts any answers will be apreciated.
Please help.

If your FD is a 3 year lock-in, then your interest accrued shall be deemed reinvested. Additionally, banks follow compound interest and not simple interest. Bank will deduct TDS if the interest is likely to exceed Rs. 10,000/- pa.

For example Rs. 100,000 invested

1st year interest on 100,000 - Rs. 9,000/-

2nd year interest 109,000 - 9,810/-

3rd year interest on 118,810 - 10,693/-

Total interest is not Rs. 27,000 but Rs. 29,503/- which is almost Rs. 10,000/- pa

Originally posted by : Mihir
	If your FD is a 3 year lock-in, then your interest accrued shall be deemed reinvested. Additionally, banks follow compound interest and not simple interest. Bank will deduct TDS if the interest is likely to exceed Rs. 10,000/- pa.   For example Rs. 100,000 invested 1st year interest on 100,000 - Rs. 9,000/- 2nd year interest 109,000 - 9,810/- 3rd year interest on 118,810 - 10,693/- Total interest is not Rs. 27,000 but Rs. 29,503/- which is almost Rs. 10,000/- pa

  Thanks Mihir for clear answer.
 So as per above scenario tax will be deducted on the interest earned on 3rd year on interest 10,693 /- ( no TDS for 1st and 2nd year interest).
My main intention of question is wheter tax is deducted on overall sum of interest earned at the End of 3 years (9,000+  9,810 + 10,693 =29,503) or on the interest per year ?

in the 3 year if u have total income below slab then file form 15-G if you are non senior citizen or form 15H if your senior citizen in 3 year then no tds will be deducted by the bank.

Originally posted by : M.com CA,CS FinTushar Sampat
	in the 3 year if u have total income below slab then file form 15-G if you are non senior citizen or form 15H if your senior citizen in 3 year then no tds will be deducted by the bank.

Thanks Tushar,
   Currently i don't have any income but may be next year onward i will have salary income. In that case should i fill form 15G ?