TDS on fixed deposits

The interest earned on Fixed term Deposits are considered as income and is subject to tax deducted at source by the bank.If you submit the form15G, Bank will not deduct the tax.

Nitin,

Under the Income Tax Act, 1961, the exemption for non Deduction of TDS u/s.194A on the Interest earned on fixed deposits is Rs.10,000/- , since, the amount of deposit is Rs.1.00 lakh and the maximum interest by any bank even assuming @ 8.5% will not entitle for deduction of TDS on the interest earned, hence you can safely invest the amount in your individual name.

I agree with Mr Vishal. Just check whether you have other fixed deposits in the same bank branch as it is the consolidated interest payable by branch on which TDS is deductible.

In such scenario, please try to book FD in another branch.

I thnk the reply of Mr.vishal is quite  satisfactoy  to Mr.Nitn.  However, I do not think why Mr.Nitin is so worry about TDS.  TDS is a prepaid tax, which is a statutory provision of Government of Indian.   it is clear thatt Mr.Nitin a government servent because he got the arrear of 6th Pay arrear.  He got salay from the government treasury.  If any TDS would be deducted by bank towards interest accuable from fixed deposit, that amount will be adjusted to the tax payable in respective year otherwise the amount of TDS will be refunded to the assessee with interest.  If any  tax payable by any person  that will finaly go to the government treasury from which a government servant get payment in form of salary.  It is not expected from a government servant to worry about so much. 

Regarding 15H form, it is not applicable to Mr. Nitin because he is getting salary in this FY more than Rs.1.5 Lakh (known from arrear amount).  Fom 15H is applicable to that person who has a below taxable income during a FY.