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Discrepancy in FD Maturity Payout from IndusInd Bank – A Case to Review
- Thread starter Fini7777
- Start date
- Replies 106
- Views 1K
Huh?! Who said anything about free money after TDS is transferred to the Government?
Banks have use of free money from the time TDS is done (so no compounding, and consequently, no further interest payment on this amount) to the time the TDS is actually transferred to the Government at a later date.
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What is confusing is this:
Yes, banks would pay more money in absence of TDS, -- but that additional money would be due to the interest on the 'TDS' amount that was not needed to be transferred, so banks had full use of that money, just like any other deposit.
With TDS, that money goes to the Government, and is no more there with the bank as a part of a deposit that can be lent out, earning money for the bank to pay interest from. So, of course banks don't have to pay interest on the money they don't have with them anymore.
It beats me how that can be construed as beneficial to the banks. They didn't pay interest on the money they didn't have with them as deposit anymore. As simple as that!
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Yes, it's necessary to check every interest credit and calculation manually for many banks nowadays. Have heard similar for the IDFC as well.
Arnal07
TF Ace
Plz explain this calculation with details. How 0.50rs is going away???????
@RAMESH BABU N , Sir - share your experience and view's on the matter.
Dear @Fini7777 @CosmicCat as
@sjmajumder already mentioned.
Had a word with a Senior Sir, Taking too much pain unnecessary is nothing worth of. He shared a situation - where is the real impact-
"Now think 🤔 about those purely living on Bank Interest Income, it was a sharp 30% reduction in Corona times from 7% range to 5% range, ex- 70 Lakhs of FD (INT 5 LK reduced to 3.5 LK)"
(TDS still in force)
RAMESH BABU N
TF Legend
RoI on FDs and TDS rates are known well before the actual TDS process kicks in. So, there is NO CONFUSION or DOUBT on the way calculations are carried out.
Those who never studied banking processes or rules governing FDs, TDS, TCS.... or who doesn't have any idea in these matters.... Will take these issues with a pinch of salt. Admitting ignorance is difficult for many - especially those with nothing more than Engineering/Systems/Marketing backgrounds.
Because of the huge knowledge gaps, for such guys everything is dicey n everything is unpredictable.
In fact, everything is clearly defined forehand n verifiable.
If any excess or shortage is there, the same is taken care of - in future - either thru filing ITRs or by banks.
Better avoid discussing such topics with nil or near-nil knowledge in these matters.
Thanks Sir, That's why I bothered you...🙏
Arnal07
TF Ace
The screen shot below is from HDFC net banking.HDFC hasn't updated or changed the limit for FORM 15H from previous financial year.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
If the limit of form 15H was 7lakh in last year tax regime, the same limit should be 12lakh this financial year.I am waiting for HDFC to update this.
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sun156
TF Premier
all banks are sending the same changes through mail and SMS
let us hope HDFC also does the same
but since it is very large bank, it has to be proactive in these before any other banks does
let us hope it happens soon
Note
New
@hender @RAMESH BABU N
With all due respect, let me make this absolutely clear — this post isn’t about misunderstanding how FD interest or TDS works. I know the processes, and I’ve dealt with TDS-related matters long enough to know that if something is marked as TDS, it’s claimable and not worth creating a fuss over. So, if the deduction was clearly shown as TDS, I wouldn’t have bothered creating this thread at all.
The issue here is something else — something that’s being overlooked in the name of “clearly defined rules.” In my case, the FD was spread across three financial years, and the total interest never crossed the exemption limit. That means TDS shouldn’t have been deducted at all,
Even putting that aside for a moment, the deduction wasn’t even marked as TDS.
FYI, This FD belongs to my brother, who has no other source of income — and even including this FD, his interest income doesn’t cross the basic exemption limit. As per the Income Tax Act, TDS is not supposed to be deducted in such cases, even if Form 15G isn’t submitted, because there's no taxable income to begin with.
So if it wasn’t TDS, then what was it? Why was a deduction made without any clear documentation? That’s the real problem.
And just to add, this wasn’t a one-off glitch. The same thing happened again today with another FD. Same silent deduction, no explanation, no visibility. The only difference is that the amount involved was much smaller.
Also, the deduction amount doesn’t match any logical rate — not 10%, not 20%, not even a rounded-off value. So there’s no way to even reverse engineer what logic was used.
I’m not here to argue over banking rules — I’m pointing out a clear lapse in transparency.
When banks start silently deducting money and can’t explain it, that’s a red flag, whether someone’s from a finance background or not.
This post is to raise awareness for others to double-check their FD closures because what’s happening here isn’t how a “clearly defined” process is supposed to look.
With all due respect, let me make this absolutely clear — this post isn’t about misunderstanding how FD interest or TDS works. I know the processes, and I’ve dealt with TDS-related matters long enough to know that if something is marked as TDS, it’s claimable and not worth creating a fuss over. So, if the deduction was clearly shown as TDS, I wouldn’t have bothered creating this thread at all.
The issue here is something else — something that’s being overlooked in the name of “clearly defined rules.” In my case, the FD was spread across three financial years, and the total interest never crossed the exemption limit. That means TDS shouldn’t have been deducted at all,
Even putting that aside for a moment, the deduction wasn’t even marked as TDS.
- No mention in the FD closure statement
- No breakup shown
- And when I asked the bank about it, they themselves confirmed no TDS was deducted
FYI, This FD belongs to my brother, who has no other source of income — and even including this FD, his interest income doesn’t cross the basic exemption limit. As per the Income Tax Act, TDS is not supposed to be deducted in such cases, even if Form 15G isn’t submitted, because there's no taxable income to begin with.
So if it wasn’t TDS, then what was it? Why was a deduction made without any clear documentation? That’s the real problem.
And just to add, this wasn’t a one-off glitch. The same thing happened again today with another FD. Same silent deduction, no explanation, no visibility. The only difference is that the amount involved was much smaller.
Also, the deduction amount doesn’t match any logical rate — not 10%, not 20%, not even a rounded-off value. So there’s no way to even reverse engineer what logic was used.
I’m not here to argue over banking rules — I’m pointing out a clear lapse in transparency.
When banks start silently deducting money and can’t explain it, that’s a red flag, whether someone’s from a finance background or not.
This post is to raise awareness for others to double-check their FD closures because what’s happening here isn’t how a “clearly defined” process is supposed to look.
yes, they haven't updated that yet
@Fini7777 - Buddy, You are very well aware of TDS 10% with PAN.
Deduction - Lack of clarity is the issue you highlighted.
You have shared many wonderful thread/content ✍️, your knowledge and expertise on credit card is tremendous. You are matured enough in the Financial World.
Again ☝️
yeah, it's true
Arnal07
TF Ace
Still some people argue that the limit of Form 15H is only 4-5lakh even in the new financial year.
It's a never ending discussion
As per my knowledge there's a diff between 15G and 15H
From the current FY It's 12L for form 15H and 4L for form 15G
People are struggling and very angry 😡, Stock Market is deep down 👎.
PNB - despite being continued OFF(Thursday , Saturday, Sunday) immediately reduced FD rates by .45 basis points (on 400 days), as the CRR down by .25 basis points.
Even rates are not updated on the home page banner, but inside and NB/MB changed.
Interest Rates fixed deposits, Interest rate deposit, interest rate
Interest Rates fixed deposits, Interest rate deposit, interest rate
Now imagine 🤔 if someone having of 1 -2 CR, have plan to do FD, by Just looking homepage , will get a shock of .45 basis points means 50,000 to 1 lakh difference all of a sudden 😳, if he actually did FD !!
