TDS on fds

This discussion clarifies how Tax Deducted at Source (TDS) is applied to Fixed Deposits (FDs). Banks collectively consider the interest earned across all your FDs when determining if the threshold for TDS deduction is met. A 10% TDS is deducted under Section 194A on interest payments exceeding £40,000 for individuals and £50,000 for senior citizens, calculated on a payment-by-payment basis.