TDS on FD Interest: Senior Citizens Can Save Tax with Form 15H

• Fixed Deposits (FDs) are a secure investment, especially for senior citizens, offering fixed interest and assured returns.
• TDS is deducted on FD interest if it exceeds certain limits: 1 lakh for senior citizens and 40,000 for general citizens.
• TDS is not an extra tax; it can be refunded or adjusted against tax liability when filing ITR.
• Senior citizens can submit Form 15H to banks to avoid TDS deduction if their total income is below the taxable limit (e.g., 12 lakh under new tax regime).
• Banks are legally required to deduct TDS once interest crosses the threshold, as they don't know an individual's full tax liability.

Why It Matters: Senior citizens can avoid TDS on FD interest by submitting Form 15H if their income is below the taxable limit.