Wrong TDS Deducted on Fixed Deposit: What to Do Next

Reviewed on: 2026-05-30.

If wrong tds deducted on fixed deposit, collect the account, application, transaction, policy, property, employee, pension, scholarship or bill reference and send one precise written complaint to the office that can correct the record or release the money. Ask for a written reason if the request is refused or kept pending. Escalate with the same evidence bundle to bank branch, customer service desk, principal nodal officer and RBI CMS. Use RTI only for records held by a public authority: file movement, deficiency notes, dispatch records, sanction details, payment advice, inspection reports or reasons recorded on file.

Use the correct external forum. Use RBI CMS complaint portal or the other official source linked below where it fits the subject. For consumer-service disputes, consider National Consumer Helpline and e-Daakhil. For public departments, CPGRAMS, state grievance portals and RTI may help. For high-value or time-sensitive cases, take professional advice before limitation expires.

• RBI CMS complaint portal
• RBI official website
• RBI Banking Ombudsman information

Preserve proof, write a dated complaint with reference numbers, and ask for a written decision or correction instead of relying on calls.

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• /practical-guides/category/banking-and-money/
• /practical-guides/fixed-deposit-lien-not-removed-after-settlement/
• /practical-guides/hospital-refuses-medical-records-reasonable-time/
• /practical-guides/life-insurance-maturity-payment-delayed/
• /practical-guides/employer-not-giving-salary-slip/
• the 1 lakh TDS threshold on senior citizen fixed deposits

1. Why is TDS deducted on fixed deposits? (a) TDS on FD: (i) Section 194A — TDS on interest income, (ii) Threshold: Rs 40,000/year (Rs 50,000 for senior citizens), (iii) Rate: 10% if PAN provided, 20% if PAN not provided, (iv) Bank deducts TDS — when interest exceeds threshold, (b) Common errors: (i) TDS deducted even when income below taxable limit, (ii) TDS at 20% — PAN not linked or not provided, (iii) TDS on reinvested interest — not due yet, (iv) Wrong section code — 194A vs 94A, (v) TDS deducted despite Form 15G/15H submitted.

1. How to claim refund of wrong TDS on FD? (a) Step 1: Check Form 26AS — on TRACES — verify TDS entries, (b) Step 2: Check AIS — Annual Information Statement — for accuracy, © Step 3: If TDS wrongly deducted: (i) Submit Form 15G (non-senior) / 15H (senior) — if income below exemption, (ii) Submit to bank — at beginning of FY — to prevent future TDS, (d) Step 4: For TDS already deducted: (i) File ITR — claiming refund, (ii) TDS reflected in Form 26AS — credit automatically, (iii) Refund — processed by CPC — direct credit to bank account, (e) Step 5: If TDS at 20% (PAN issue): (i) Link PAN with Aadhaar — if not linked, (ii) Submit PAN to bank — update records, (iii) Bank will deduct at 10% — going forward, (iv) For past 20% TDS — claim refund in ITR.

1. Comparison table: TDS rates on FD interest. (a) Normal (PAN provided): (i) Rate: 10%, (ii) Threshold: Rs 40,000/year (Rs 50,000 senior), (iii) Section: 194A, (b) No PAN: (i) Rate: 20%, (ii) Threshold: same, (iii) Section: 194A, © Senior citizen: (i) Rate: 10%, (ii) Threshold: Rs 50,000/year, (iii) Section: 194A, (d) Form 15G/15H submitted: (i) Rate: 0%, (ii) Threshold: N/A — no TDS, (iii) Section: N/A. (Note: Form 15G/15H must be submitted every year — at beginning of FY.)

1. How to submit Form 15G/15H? (a) Form 15G: (i) For individuals below 60 years, (ii) Conditions: (1) Total income below exemption limit — Rs 2.5L (FY 2025-26), (2) Tax liability should be zero, (3) Resident individual, (b) Form 15H: (i) For senior citizens — 60 years+, (ii) Conditions: (1) Tax liability should be zero, (2) Resident senior, © Where to submit: (i) Each bank branch — where FD is held, (ii) Online banking — most banks accept online, (iii) At beginning of FY — April or when FD is opened.

1. Practical tips. (a) Submit Form 15G/15H — every year — if income below exemption, (b) Link PAN-Aadhaar — avoid 20% TDS, © Check Form 26AS — verify TDS entries, (d) File ITR — claim refund for wrong TDS, (e) Example: Senior citizen had Rs 30,000 TDS deducted despite Form 15H submitted; bank didn't process form; filed ITR claiming refund; received Rs 30,000 refund in 6 months.

See Wrong TDS on FD and How to File RTI and Section 139(9).