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

[desiviru]

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.

Definitely not.

Again, amt debit and credit to savings doesn't mean FD account is closed and cease to exist. I also have FDs since 20 yrs and online FDs too. Till now no such issues faced except one where FD proceeds were credited back but FD account not closed.

99% of time system does thing correctly. 1% is allowed.

 

[sun156]

yes, I can get refund but have to wait for one yr for this (not a big deal)

but The issue is No TDS should have been deducted in FY2025–26, and IndusInd Bank’s deduction appears to be an error or lack of proper system handling

for current FY tds is >50k

That means no TDS was deducted. If it were, you would be issued a TDS certificate (Form 16A).

So, no TDS was done in previous years, and they paid out the entire interest amount this year which was more than the yearly threshold (40k). So they were bound to do TDS on the full interest that was only paid now.
.

It wont like that bro, The CBS will estimate the Interest projection at starting of the year , then In projection greater than 40k then 10% will be debited from first quarter on wards
In some CBS software the software wont do projection Just it calculates how much interest we are settling for each quarter, once it crossed >40k then 10% on (Prev settled interest and Current quarter interest) will be deducted from the prevailing FDs

TDS is realized when Interest Income is settled, not when customer is settled. so what you said is WRONG
His FD is spanned For 3FYs , every year how much interest he earned on all FDs at that quarter TDS deducts when crosses >40k
not when income is relaized by customer

 

[sjmajumder]

Again, amt debit and credit to savings doesn't mean FD account is closed and cease to exist. I also have FDs since 20 yrs and online FDs too. Till now no such issues faced except one where FD proceeds were credited back but FD account not closed.

99% of time system does thing correctly. 1% is allowed.

As I said, faulty system and poor design led to this error. Probably an "IndusInd Exclusive" and definitely not followed by all banks. Financial transactions should be robust and should have no room for such errors. It should either execute the whole batch or in case of error roll-back the entire batch.

 

[desiviru]

As I said, faulty system and poor design led to this error. Probably an "IndusInd Exclusive" and definitely not followed by all banks. Financial transactions should be robust and should have no room for such errors. It should either execute the whole batch or in case of error roll-back the entire batch.

Infosys at helm of banking software aka Finnacle. Can't blame banks. This year ITax portal is yet to make ITR filing Live. Seems again Infosys crying for more money and Govt not giving them.

 

[sjmajumder]

Infosys at helm of banking software aka Finnacle. Can't blame banks. This year ITax portal is yet to make ITR filing Live. Seems again Infosys crying for more money and Govt not giving them.

Can blame banks partially. They do not implement recommended hardware infra to keep cost down which results in major outages and transactions failing due to lack of available resource. I have first hand experience.

 

[Fini7777]

@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.

Yeah, sure I'll check tmrw...
I think the balance amount will be automatically credited by tmrw like u said
thanks for ur input

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.

Auto closed

 

[sun156]

@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).

I am sorry bro , It is not Technical error or Glitch it is in accordance with TAX laws
considered across the CIF , which was crossed than your submission bcz of newly created FD, which is breaching the Rule , so for that quarter until FD matures of newly created FD the TDS will be deducted
( since you havent submitted the 15H which internally rectifies old 15H or will be like addendum )

not all CBS works same bro. thats the major drawback.

Dont think that if I submitted 15G/H for 2 FDs created in MAY 24
and later created another 2 FDs in sep 24 but havent submitted 15G/H
then the FDs created in MAY will also suffer TDS deduction if projected income for FY > than threshold

most of the bank employees and customer dont know that 15G or 15H should be submitted at 1st week of FY (not rule) , and also for the additonal FDs they created later on , and banks persons also wont guide.

 

[CosmicCat]

I am sorry bro , It is not Technical error or Glitch it is in accordance with TAX laws
considered across the CIF , which was crossed than your submission bcz of newly created FD, which is breaching the Rule , so for that quarter until FD matures of newly created FD the TDS will be deducted
( since you havent submitted the 15H which internally rectifies old 15H or will be like addendum )

Any source for this policy, particularly pertaining to SBI or Income Tax laws? I'm unable to find so.

Also, I'm not sure if Income Tax laws explicitly mention it anywhere — since as I recall clearly, a few years ago, my dad had opened an FD with ICICI Bank whose projected TDS for the FY was supposed to cross the threshold of ₹40,000, and he also submitted Form 15G for it to avoid TDS deduction. And then also created two short-term FDs which were scheduled to mature in the same FY, but they were credited without any deduction of TDS from the other FD whose Form 15G was already submitted.

As far as I know, once you have submitted Form 15G/H for one or more FDs, they aren't supposed to be overridden even if new FDs are opened; The newly opened FDs are required to have a separate Form 15G/H submitted. However, I can't confirm that for sure, since this policy may vary bank-to-bank.

 

[sun156]

Any source for this policy, particularly pertaining to SBI or Income Tax laws? I'm unable to find so.

Also, I'm not sure if Income Tax laws explicitly mention it anywhere — since as I recall clearly, a few years ago, my dad had opened an FD with ICICI Bank whose projected TDS for the FY was supposed to cross the threshold of ₹40,000, and he also submitted Form 15G for it to avoid TDS deduction. And then also created two short-term FDs which were scheduled to mature in the same FY, but they were credited without any deduction of TDS from the other FD whose Form 15G was already submitted.

As far as I know, once you have submitted Form 15G/H for one or more FDs, they aren't supposed to be overridden even if new FDs are opened; The newly opened FDs are required to have a separate Form 15G/H submitted. However, I can't confirm that for sure, since this policy may vary bank-to-bank.

so you are saying that FDs created later the 15G/H not submitted and stiill havent got TDS debited even at maturity
bcz may be In ICICI icici people wont submit it in Finacle directly even they use it as CBS , out side they have other software in which they submit this. The 15G/H may be submitted at account level also got sumitted at CIN level and the income declared may be in below range even accumulating the next two FD interest.
or the 15G/H submitted from Mobile or INB may be submitted at CIF level

In prev times when Outer software is no there they will come to CBS and submit 15G/H at account level by ( CSCAM menu ) or person who is knowledgeable also will submit at CIN level ( CMRC menu )
some uses TDSEXMT


but in sbi


I haven't said the OLD 15h overridden, I said when ever additional FDs created for those also you should submit the same 15G/H
otherwise the THE FDS whose 15G/H previously their interest also will be for TDS deduction IN SBI
because in SBI even their is an option to submit 15G/H at CIF level they dont do it , A strict circular has came 3-4 years back saying that they have to submit both at account level and CIF level especially for SENIOR CITIZENS< PENSION ACCOUTS < CENTRAL GOVT SCHEME ACCOUNTS after lot of complaints from elderly e.t.c


bro you only said the answer
and I also mentioned the same , that all CBS wont work same
Suppose most of the PSU settle interest income based on FY quarter ends ( JUNE , sep ..... march end) which use FInacle
but some banks settle interest on completion of 3 months or 90 days completion irrespective quarter end even they use FINACLE like INDUSIND

 

[desiviru]

so you are saying that FDs created later the 15G/H not submitted and stiill havent got TDS debited even at maturity
bcz may be In ICICI icici people wont submit it in Finacle directly even they use it as CBS , out side they have other software in which they submit this. The 15G/H may be submitted at account level also got sumitted at CIN level and the income declared may be in below range even accumulating the next two FD interest.
or the 15G/H submitted from Mobile or INB may be submitted at CIF level

In prev times when Outer software is no there they will come to CBS and submit 15G/H at account level by ( CSCAM menu ) or person who is knowledgeable also will submit at CIN level ( CMRC menu )
some uses TDSEXMT


but in sbi


I haven't said the OLD 15h overridden, I said when ever additional FDs created for those also you should submit the same 15G/H
otherwise the THE FDS whose 15G/H previously their interest also will be for TDS deduction IN SBI
because in SBI even their is an option to submit 15G/H at CIF level they dont do it , A strict circular has came 3-4 years back saying that they have to submit both at account level and CIF level especially for SENIOR CITIZENS< PENSION ACCOUTS < CENTRAL GOVT SCHEME ACCOUNTS after lot of complaints from elderly e.t.c


bro you only said the answer
and I also mentioned the same , that all CBS wont work same
Suppose most of the PSU settle interest income based on FY quarter ends ( JUNE , sep ..... march end) which use FInacle
but some banks settle interest on completion of 3 months or 90 days completion irrespective quarter end even they use FINACLE like INDUSIND

Bro currently we are not sure whether it has been deducted for TDS or what. If it had atleast he had entry in statement. So till he gets the credit or negative credit from savings, not one can onclude.

Rest all your points are right that TDS is by law not by choice. But here you try to understand what the issues is.

 

[CosmicCat]

I haven't said the OLD 15h overridden, I said when ever additional FDs created for those also you should submit the same 15G/H
otherwise the THE FDS whose 15G/H previously their interest also will be for TDS deduction IN SBI
because in SBI even their is an option to submit 15G/H at CIF level they dont do it

To be honest, I don't know what to say though. 😛 Things really seem to be complicated with SBI, especially when there are no standard policies around that can be referred by the public.

As I mentioned earlier as well as in my original post, they deducted the TDS for all the SCSS deposits combined for only the quarter Oct-Dec 2024, in which that FD worth ₹50,000 was opened. Its tenure was just 3 months, and it matured on 01-01-2025. Its estimated interest upon maturity was ₹699, so it was expected to deduct only ₹70 (10% of ₹699), since Form 15H declaration wasn't submitted for it separately. So, SBI should have credited ₹50,629 upon maturity instead of ₹50,699.

However, not only did they deduct ₹70 TDS (10% of ₹699, and justified), but also deducted ₹4,900 additionally, which is, 10% TDS of the ₹49,000 interest amount for the quarter Oct-Dec 2024 for the SCSS deposits whose Form 15H was already submitted back in April 2024. And, as I'm aware, SBI deducts TDS on quarterly basis from the interest accumulated in that quarter — at the end of the quarter. And as they didn't deduct any TDS in Jan-Mar 2025 quarter, it could only mean the issue was solely a technical glitch.

The reason why it makes me annoyed is, SBI decided to deduct it from the principal amount, dipping its value by around ₹5,000, and credited only ₹45,729 to his savings account, and provided no concrete information or link to relevant policies when a complaint was registered. Fixed Deposits are made with specific financial goals in mind, and such unauthorized deductions from the Principal Amount undermine trust and financial security. This deduction from the Principal Amount violates the fundamental principles governing Fixed Deposits, wherein the principal amount must be sacrosanct upon maturity, and should not be tampered with under any circumstances.

 

[sun156]

To be honest, I don't know what to say though. 😛 Things really seem to be complicated with SBI, especially when there are no standard policies around that can be referred by the public.

As I mentioned earlier as well as in my original post, they deducted the TDS for all the SCSS deposits combined for only the quarter Oct-Dec 2024, in which that FD worth ₹50,000 was opened. Its tenure was just 3 months, and it matured on 01-01-2025. Its estimated interest upon maturity was ₹699, so it was expected to deduct only ₹70 (10% of ₹699), since Form 15H declaration wasn't submitted for it separately. So, SBI should have credited ₹50,629 upon maturity instead of ₹50,699.

However, not only did they deduct ₹70 TDS (10% of ₹699, and justified), but also deducted ₹4,900 additionally, which is, 10% TDS of the ₹49,000 interest amount for the quarter Oct-Dec 2024 for the SCSS deposits whose Form 15H was already submitted back in April 2024. And, as I'm aware, SBI deducts TDS on quarterly basis from the interest accumulated in that quarter — at the end of the quarter. And as they didn't deduct any TDS in Jan-Mar 2025 quarter, it could only mean the issue was solely a technical glitch.

The reason why it makes me annoyed is, SBI decided to deduct it from the principal amount, dipping its value by around ₹5,000, and credited only ₹45,729 to his savings account, and provided no concrete information or link to relevant policies when a complaint was registered. Fixed Deposits are made with specific financial goals in mind, and such unauthorized deductions from the Principal Amount undermine trust and financial security. This deduction from the Principal Amount violates the fundamental principles governing Fixed Deposits, wherein the principal amount must be sacrosanct upon maturity, and should not be tampered with under any circumstances.

Of course what ever you said was true, This happens bcz employees dont work with passion or or they dont even trained well . Just enjoy the 21 days traiming and come to branch.

Since it happend to your first you are being annoyed , but daily same problems customer appears before branch bcs this LEGEND womt say to old age person to submit 15H while he is opening FD , because he has to move his hand again to enter the form.


Bro when The intrest mode is monthly or quaterly payout then in some banks Tds cuts every month intrest payout sometimes to adjust TDS due to late or Presubmission before opening another FD like in your case , the end maturity amount will be decreased . (Of course they deduct it from principal since intrest already payed without TDS deduction )
You will receive the same pdf from this emial
donotreply.tdscert@alerts.sbi.co.in

 

[CosmicCat]

(Of course they deduct it from principal since intrest already payed without TDS deduction )

Indeed! Whatever they did was totally wrong. TDS should not have been deducted in the first place for the deposits whose Form 15H was already submitted. Of course my dad will claim a refund while filing ITR. But a refund doesn’t mean the bank gets a free pass to violate process or ethics. People deserve accountability and transparency at the source, not just a patchwork remedy later, right?

Also, found this from this document on SBI's website:

I skimmed through this document, and found no concrete information in it that's applicable to my dad's complaint.

 

[Trust Me]

I checked the interest certificates and found the following:

• In FY 2023–24: TDS was not applicable as the total interest earned was ₹10,512(cumulative) — which is under the ₹40,000 limit.
• In FY 2024–25: Interest earned was ₹36,003(cumulative) — again, below the ₹40,000 TDS threshold.
• In FY 2025–26: The remaining interest of approximately ₹7,236 was paid today, and around ₹3874 (FY2023 -24 unpaid intr) will be paid upon the maturity of the FDs.

The FD was booked on 11th October 2023 (FY 2023–24) and matured today in FY 2025–26.
The interest income was spread across three financial years.

The above is what was reported by the OP.

My response based on that was (the threshold amount mentioned was wrong, -- but the point remains):

That means no TDS was deducted. If it were, you would be issued a TDS certificate (Form 16A).

So, no TDS was done in previous years, and they paid out the entire interest amount this year which was more than the yearly threshold (40k). So they were bound to do TDS on the full interest that was only paid now.
.

And you responded:

TDS is realized when Interest Income is settled, not when customer is settled. so what you said is WRONG
His FD is spanned For 3FYs , every year how much interest he earned on all FDs at that quarter TDS deducts when crosses >40k
not when income is relaized by customer

Before jumping ahead to post, a little effort at comprehension of the subject matter would have been great.
.

 

[Arnal07]

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. No	Name	Age	Bank	Interest Income in FY25-26	TDS (PAN available) @10%	TDS (No PAN/Form 60) @20%
1.	Narendra Modi	74	SBI	99999	No TDS	No TDS
2.	Narendra Modi	74	PNB	150000	15000	30000
3.	Narendra Modi	74	ICICI	95000	No TDS	No TDS
4.	Rahul Gandhi	54	SBI	49999	No TDS	No TDS
5.	Rahul Gandhi	54	PNB	51000	5100	10200
6.	Rahul Gandhi	54	ICICI	100000	10000	20000

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.

Unity bank email shows that form 15H can be submitted if income is below 12lakh for current financial year.Also, according to the lawyers I spoke 12lakh is the limit for form 15H and 4lakh for form 15G.

 

[CosmicCat]

Unity bank email shows that form 15H can be submitted if income is below 12lakh for current financial year.Also, I according to the lawyers I spoke 12lakh is the limit for form 15H and 4lakh for form 15G.

Just to add a quick clarification here:
For Form 15H, the rule has always been that your total tax liability should be nil. So, for the current financial year, this applies if your total income is below ₹12,00,000.

As for Form 15G, the interest income exemption limit still remains ₹2,50,000 if you're filing under the old tax regime. The higher limit of ₹4,00,000 only applies if you opt for the new tax regime.

This year, I've noticed some banks to ask the regime they'd be filing tax under while filling out Form 15G/H online.

 

[sun156]

Unity bank email shows that form 15H can be submitted if income is below 12lakh for current financial year.Also, I according to the lawyers I spoke 12lakh is the limit for form 15H and 4lakh for form 15G.

Leave those I will tell you simple form,

If total income from all sources (salary, rents , intrests) after deductions For the current FY , AS per your tax regime is NIL (If you think)
And also Income from Exclusively from BANK INTREST from all banks if you feel it is below 3 lakhs.
Then you can submit the form 15H

At the end of the story , your Tax liability to GOVT should be Zero/NIL
Some persons have idea what is their projected income for this year
Some persons do and later take heavy penalty for wrong declerarions by having demand notice served



Now same applies as per budget announced values this year check the thresold ks changed to 50k for <60
1 lakh for >60

 

[desiviru]

Unity bank email shows that form 15H can be submitted if income is below 12lakh for current financial year.Also, I according to the lawyers I spoke 12lakh is the limit for form 15H and 4lakh for form 15G.

I too received this email from Unity Bank but somehow their managing team has messed up in understanding it. Soon they will release a new email with ocrrect defined limit.

Which lawyers are you talking about? Financial world has CA and tax lawyers.

They are using aloophole to define things.

The IT Act says you are eligible to submit Form 15G/15H if you net tax liability in next AY for current FY is Nil. But at the same time same law defines it otherwise which CA's and tax lawyers wilfully ignore.

Read this wording of 15G/H carefully,

*I ____________________ (name) do hereby declare that I am resident in India within the meaning of section 6 of the Income-tax Act, 1961. I also hereby declare that to the best of my knowledge and belief what is stated above is correct, complete and is truly stated and that the incomes referred to in this form are not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961.

I further declare that the tax on my estimated total income including *income/incomes referred to in column 15 *and aggregate amount of *income/incomes referred to in column 17 computed in accordance with the provisions of the Income-tax Act, 1961, for the previous year ending on 31st March,2026 relevant to the assessment year 2026-2027 will not exceed the maximum amount which is not chargeable for income tax.

Now the maximum limit which is not chargeable to tax is 2.5L for normal citizens in old regime, 3L for sr. citizens and 5L for super sr citizens above 80 years of age. This year the limit for Sr. and Super Sr. is revised to 5L. So for any kind of Sr. Citizens you are eligible for 15H if you have total income upto 5L.

Similarlly, in new regime income which is not taxable is 4L. Above that you are taxed for 4-8L and 8-12L but you get rebate under section 87(a) which is making your tax Nil. While 15G/15H is only when your whole income is not taxed at all.

Tax Department has made it clear many times that if you are taking rebate u/s 87(a) then 15G/15H can not be filled. You have to face TDS and get refund of tax because this tax is being refunded in other section not making you eligible to have a non-TDS FD income or interest from any other source.

 

[dvader]

I too received this email from Unity Bank but somehow their managing team has messed up in understanding it. Soon they will release a new email with ocrrect defined limit.

Which lawyers are you talking about? Financial world has CA and tax lawyers.

They are using aloophole to define things.

The IT Act says you are eligible to submit Form 15G/15H if you net tax liability in next AY for current FY is Nil. But at the same time same law defines it otherwise which CA's and tax lawyers wilfully ignore.

Read this wording of 15G/H carefully,

*I ____________________ (name) do hereby declare that I am resident in India within the meaning of section 6 of the Income-tax Act, 1961. I also hereby declare that to the best of my knowledge and belief what is stated above is correct, complete and is truly stated and that the incomes referred to in this form are not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961.

I further declare that the tax on my estimated total income including *income/incomes referred to in column 15 *and aggregate amount of *income/incomes referred to in column 17 computed in accordance with the provisions of the Income-tax Act, 1961, for the previous year ending on 31st March,2026 relevant to the assessment year 2026-2027 will not exceed the maximum amount which is not chargeable for income tax.

Now the maximum limit which is not chargeable to tax is 2.5L for normal citizens in old regime, 3L for sr. citizens and 5L for super sr citizens above 80 years of age. This year the limit for Sr. and Super Sr. is revised to 5L. So for any kind of Sr. Citizens you are eligible for 15H if you have total income upto 5L.

Similarlly, in new regime income which is not taxable is 4L. Above that you are taxed for 4-8L and 8-12L but you get rebate under section 87(a) which is making your tax Nil. While 15G/15H is only when your whole income is not taxed at all.

Tax Department has made it clear many times that if you are taking rebate u/s 87(a) then 15G/15H can not be filled. You have to face TDS and get refund of tax because this tax is being refunded in other section not making you eligible to have a non-TDS FD income or interest from any other source.

Finally someone putting it right. 12L is not the slab. The slab starts at 4L. And it's for this reason, I keep FDs in mutiple accounts. Even if total income exceeds 12L, you can still pay taxes. It's not worth wasting time and energy at least not for 15G. 15H still makes sense if you are getting more than 5K+ with staff promo or some other reason keep FDs with one CIF.

Ujjivan explains it better

Taxation (TDS) on Fixed Deposit Interest (FY 2025-26)

Your FD interest income is fully taxable. However, the changes in tax slab and TDS exemption limit can help you save tax. Here's how.

www.ujjivansfb.in

 

[CosmicCat]

I too received this email from Unity Bank but somehow their managing team has messed up in understanding it. Soon they will release a new email with ocrrect defined limit.

Which lawyers are you talking about? Financial world has CA and tax lawyers.

They are using aloophole to define things.

The IT Act says you are eligible to submit Form 15G/15H if you net tax liability in next AY for current FY is Nil. But at the same time same law defines it otherwise which CA's and tax lawyers wilfully ignore.

Read this wording of 15G/H carefully,

*I ____________________ (name) do hereby declare that I am resident in India within the meaning of section 6 of the Income-tax Act, 1961. I also hereby declare that to the best of my knowledge and belief what is stated above is correct, complete and is truly stated and that the incomes referred to in this form are not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961.

I further declare that the tax on my estimated total income including *income/incomes referred to in column 15 *and aggregate amount of *income/incomes referred to in column 17 computed in accordance with the provisions of the Income-tax Act, 1961, for the previous year ending on 31st March,2026 relevant to the assessment year 2026-2027 will not exceed the maximum amount which is not chargeable for income tax.

Now the maximum limit which is not chargeable to tax is 2.5L for normal citizens in old regime, 3L for sr. citizens and 5L for super sr citizens above 80 years of age. This year the limit for Sr. and Super Sr. is revised to 5L. So for any kind of Sr. Citizens you are eligible for 15H if you have total income upto 5L.

Similarlly, in new regime income which is not taxable is 4L. Above that you are taxed for 4-8L and 8-12L but you get rebate under section 87(a) which is making your tax Nil. While 15G/15H is only when your whole income is not taxed at all.

Tax Department has made it clear many times that if you are taking rebate u/s 87(a) then 15G/15H can not be filled. You have to face TDS and get refund of tax because this tax is being refunded in other section not making you eligible to have a non-TDS FD income or interest from any other source.

Excellent insights! On the Internet, I've always found contradicting rules about when to file Form 15G and when to not.

Here's a helpful table for you all:


In simple words, you can file Form 15G to get relief from TDS deduction only if your total income is below ₹4L if you'd file ITR under new regime, and ₹2.5L if you'd file it under old regime.