Banks quote a gross rate. You keep the post-tax one. This calculator uses quarterly compounding (the Indian bank convention), applies your slab, and shows whether TDS will be deducted — ₹50,000 for most depositors, ₹1,00,000 for senior citizens.
A 7% FD is not a 7% return once tax is applied. See the real number.
TDS at 10% is an advance collection, not a final tax. If you are in the 30% slab, the bank deducts 10% and you still owe the remaining 20% at filing. Many depositors are caught out at year end because they treated the TDS certificate as settlement.
Interest is aggregated across all branches of the same bank under core banking, and FD and RD interest from that bank are added together against one threshold. Splitting a deposit across branches does not avoid TDS. Splitting across different banks does — but the tax remains payable either way.
This is one of the most common errors we see. Section 80TTA (₹10,000) covers savings account interest only. FD and RD interest are excluded. Senior citizens get the wider relief — ₹50,000 covering all deposit interest including FDs — but only in the old regime. Under the Income-tax Act 2025 both sit in Section 153.
For FY 2026-27 the TDS provision is Section 393(1) of the Income-tax Act 2025 (formerly 194A). Filing a declaration to avoid TDS now uses Form 121, which replaces Forms 15G and 15H.
The calculator does the arithmetic. TaxSphere — our free case-law library, 1,184 authorities and the Act in full — has the judgments, the circulars and the statutory text for the same provision.
