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Discrepancy in FD Maturity Payout from IndusInd Bank – A Case to Review

Adding to @Trust Me reply, sharing the current tules of TDS for FD which has been revised from FY25-26/AY26-27,

TDS Deduction of 10% if total interest income across all account in a particular bank with same Cust ID if interest income exceeds 50000 for people below 60 years of age. Below 50000, no TDS on FD. It has been revised from 40000 earlier which was till March 31st, 2025 aka FY24-25.

For senior citizens i.e above 60 years of age, no TDS for FD if total interest income in a particular bank is below 100000 (revised from 50000).

Tabular Example:

S. NoNameAgeBankInterest Income in FY25-26TDS (PAN available)
@10%
TDS (No PAN/Form 60) @20%
1.Narendra Modi74SBI99999No TDSNo TDS
2.Narendra Modi74PNB1500001500030000
3.Narendra Modi74ICICI95000No TDSNo TDS
4.Rahul Gandhi54SBI49999No TDSNo TDS
5.Rahul Gandhi54PNB51000510010200
6.Rahul Gandhi54ICICI1000001000020000

The 50000 limit / 100000 limit is per bank across all FDs you hold in that bank throughout India as it is per Cust ID.

Suppose you are 30 yrs old and you have SBI Account in Mumbai having FD interest of 25000 and this FD is created on April 2, 2025. SBI won't deduct any TDS.

Now in SBI Delhi with same Cust ID you open new FD with high amount in Oct 2025 which will have 27000 interest till March 31st, 2026. Now n Dec payout SBI will deduct 10% TDS on interest and in March payout they will deduct lumpsum TDS upto Rs.5200 (10% of 52000).

But if you had two FDs having interest 25K and 27K in different banks, both wont deduct TDS as it is under 50K limit.

Note: If your income is below 3L for FY24-25 or 4L for FY25-26 (5L in case of senior citizens) from all sources then you are eligible to submit form 15G/H with bank. Forum has to be filled every new FY in April 2 to May 31st because in June banks payout quarterly interest and if you have FD with monthly payouy do it in April itself before making FD/interest credit.

15G (for citizens below 60): Applicable only if income from all sources is 4L.

15H (for senior citizens): Applicable onlt when income from all sources is below 5L.

15G/15H can be submitted if your net tax liability is Nil. Some people argue that when upto 12L they don't have tax considerations they are eligible but tax department clearly tells 4L/5L. Any changes in it will reflect in bank when you submit it online in IBanking/App.
 
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I'm afraid you have a misconception regarding how TDS works. The bank will only do TDS if the interest income for the FY is above the yearly threshold, and not otherwise. This is in accordance with the tax laws.

They have done the TDS now because the current interest payout (the entire amount payable) crossed the threshold, and they deducted 10% on the whole amount now since nothing was deducted earlier. The Government wants 10% TDS on the entire interest payout, whether done in installments, or in one shot. The bank has no say in this.

Rather than feeling unhappy, you should be happy that the total yield on your FD turned out to be more this way rather than if TDS were done in each FY.

Why not do a hypothetical calculation and deduct 10% of the interest earned each FY before compounding with the principal for that year, and see what you would have earned in that case on maturity?

I'm sure you'd be surprised, and happy when you realize the amount of "cashback" you've received from the Government because TDS was done only at the very end! 🙂
.

On Point. It's better govt took ur money at the end.

And at this point I don't know why people do FDs in one bank. I mean we have 12 PSUs and even more commercial banks just open 4-5 accounts in diff banks of ur choice and be done with this TDS crap if your income falls below the taxable limit.

And even if you physically submit form 15G/H there is a remote chance that they don't update it correctly in the system and TDS gets deducted via automated process.
 
Adding to @Trust Me reply, sharing the current tules of TDS for FD which has been revised from FY25-26/AY26-27,

TDS Deduction of 10% if total interest income across all account in a particular bank with same Cust ID if interest income exceeds 50000 for people below 60 years of age. Below 50000, no TDS on FD. It has been revised from 40000 earlier which was till March 31st, 2025 aka FY24-25.

For senior citizens i.e above 60 years of age, no TDS for FD if total interest income in a particular bank is below 100000 (revised from 50000).

Tabular Example:

S. NoNameAgeBankInterest Income in FY25-26TDS (PAN available)
@10%
TDS (No PAN/Form 60) @20%
1.Narendra Modi74SBI99999No TDSNo TDS
2.Narendra Modi74PNB1500001500030000
3.Narendra Modi74ICICI95000No TDSNo TDS
4.Rahul Gandhi54SBI49999No TDSNo TDS
5.Rahul Gandhi54PNB51000510010200
6.Rahul Gandhi54ICICI1000001000020000

The 50000 limit / 100000 limit is per bank across all FDs you hold in that bank throughout India as it is per Cust ID.

Suppose you are 30 yrs old and you have SBI Account in Mumbai having FD interest of 25000 and this FD is created on April 2, 2025. SBI won't deduct any TDS.

Now in SBI Delhi with same Cust ID you open new FD with high amount in Oct 2025 which will have 27000 interest till March 31st, 2026. Now n Dec payout SBI will deduct 10% TDS on interest and in March payout they will deduct lumpsum TDS upto Rs.5200 (10% of 52000).

But if you had two FDs having interest 25K and 27K in different banks, both wont deduct TDS as it is under 50K limit.

Note: If your income is below 3L for FY24-25 or 4L for FY25-26 (5L in case of senior citizens) from all sources then you are eligible to submit form 15G/H with bank. Forum has to be filled every new FY in April 2 to May 31st because in June banks payout quarterly interest and if you have FD with monthly payouy do it in April itself before making FD/interest credit.

15G (for citizens below 60): Applicable only if income from all sources is 4L.

15H (for senior citizens): Applicable onlt when income from all sources is below 5L.

15G/15H can be submitted if your net tax liability is Nil. Some people argue that when upto 12L they don't have tax considerations they are eligible but tax department clearly tells 4L/5L. Any changes in it will reflect in bank when you submit it online in IBanking/App.
NM- FD
RG-FD
Data leak 🤔😉
 
Hey everyone,

Here’s a recent issue I faced with IndusInd Bank while redeeming one of my Fixed Deposits — sharing this so others can stay alert and double-check when their FDs mature.

🔹 I had an FD of ₹1,00,000 which matured today. Based on the interest rate, the expected maturity amount was ₹1,12,370.
🔹 However, only ₹1,08,880 was credited to my savings account

Upon checking the closed FD statement, I noticed:
  • ₹1,10,245 was debited from the FD
  • So there's a shortfall of ₹1,365 between the FD debit and the actual credit
  • Additionally, ₹2,125 was deducted (on ₹12,370 interest), which is higher than the standard 10% TDS — despite my PAN being linked
I haven't submitted Form 15G, and my total interest income for the current financial year is around ₹51,000 (including this FD).

My RM couldn’t explain the deductions clearly and mentioned that no TDS was shown on their end — and advised me to escalate the issue to the Nodal Desk. I’m currently doing that.
What could be the reason for this? Is this an error, or am I missing something?
Has anyone else faced something similar? Would love to hear about your experience.

@cardio_guy @SSV @Anindya98 @NAB @sjmajumder @newmakerhere @hender @BVC @CosmicCat @BeingIncog @Beyond @helloworld
1.kindly keep the FD advice screenshot hiding personal details
2. do you hold any joint account in Indusind
 
1.kindly keep the FD advice screenshot hiding personal details
2. do you hold any joint account in Indusind
Yeah, these days even publcizing account number can invite lot of trouble for holders. We kwwp advising people not to share info. but he may have missed it as may not be sware it is showing account numbers of FD and savings.
 
Yeah, these days even publcizing account number can invite lot of trouble for holders. We kwwp advising people not to share info. but he may have missed it as may not be sware it is showing account numbers of FD and savings.

I only understood half what you said bro.
I asked him to hide all the personla details any how (if u missed to read it)
 
Yeah, these days even publcizing account number can invite lot of trouble for holders. We kwwp advising people not to share info. but he may have missed it as may not be sware it is showing account numbers of FD and savings.
Okay now got it. Did he shared mistakenly showing acc number.
My bad. I already told him
 
@Fini7777 — I don’t have much to add to this thread, as others have already shared some excellent insights. But I’d like to highlight one recurring issue: many banks’ Core Banking Systems (CBS) still seem buggy or inconsistently implemented when it comes to handling TDS.

Take my recent experience with SBI as an example (You should specifically read the yesterday's amendment to that post). Although my dad had submitted Form 15H for all his SCSS (Senior Citizens’ Savings Scheme) deposits for the financial year in April 2024, they failed to honour it for one particular quarter (Oct-Dec '24). During that period, a short-term FD of ₹50,000 was opened by him in October '24 for 3 months, but no separate Form 15H was submitted specifically for it. (He had held no other FDs with them during that financial year.)

However, upon its maturity, they deducted ₹70 as 10% TDS on the ₹699 interest earned from it, since Form 15H wasn’t submitted for it separately, and it was also fair for them to do so. However, what’s baffling is that the bank also deducted an additional ₹4,900 as TDS on the SCSS interest income (Nearly ₹49,000) for that same quarter, despite valid Form 15H being already in place for those SCSS deposits. This effectively meant a 10% deduction on SCSS interest, which shouldn't have happened, and led to a significant dip in the principal credited. Essentially, he received around ₹5,000 less than the principal amount. However, they didn't deduct any TDS for the Jan-Mar '25 quarter—indicating it was a technical issue at their end.

Personally, experiences like these are why I’ve always felt more comfortable keeping emergency funds in Debt Mutual Funds rather than FDs. While they don’t offer the same instant liquidity, they give you better control over taxation and avoid surprises like this.

If you still prefer FDs for emergency funds, a good practice is to split them across multiple banks in such a way that in no bank the total interest income across all the FDs combined exceeds ₹50,000. Or rather submit Form 15G if you feel that no TDS should be deducted from your account if you would be having a total interest income below the basic exemption limit of ₹2,50,000 (Under old regime) or ₹4,00,000 (Under new regime).
 
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@Fini7777 Talked about your issue to a known person in IndusInd working as Manager.

You will receive your interest automatically by tonight or tomorrow morning directly in your savings account. Bank runs interest credit command twice a day. Problem here is in morning FD got closed today when interest command was yet to run or some issues while it ran and system closed it which it should as it is maturity date. Now in evening or tomorrow morning when it will re-run you will have your credit. This process is followed in all banks.

Just remember amount debit from FD and credit to your savings account doesn't mean FD has closed. It closes by midnight or maximum 3 days from auto-closure date and in some cases it never closes and we have to request for closure although amt shows as Nil. I hope in next 48 hours all your problems will solve itself.

One more thing is is this FD got auto closed or you closed it manually? I hope it was auto closure and a no interest command is the cause of issue. It happens very rarely. All technical issue or server not available at backend.
 
@Fini7777 Talked about your issue to a known person in IndusInd working as Manager.

You will receive your interest automatically by tonight or tomorrow morning directly in your savings account. Bank runs interest credit command twice a day. Problem here is in morning FD got closed today when interest command was yet to run or some issues while it ran and system closed it which it should as it is maturity date. Now in evening or tomorrow morning when it will re-run you will have your credit.
Faulty system, poor design. The closing procedure should have a validation process to ensure all formalities, like interest credit till date, TDS, etc. are successfully posted before closing the FD. If not, it should be able to run adhoc commands to complete formalities before closing the FD.
This process is followed in all banks.
Definitely not.
 
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