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

[sjmajumder]

@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.

• 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.

Totally agree, bro. But it's honestly amusing how some people think so highly of themselves. They undermine others by claiming they lack knowledge, yet all they do is speak in hypotheticals, without addressing any of the actual issues raised. It's like the typical banker attitude—deny anything is wrong, insist everything is 'as per the book,' but offer no real explanation whatsoever.

What they often forget—or are completely unaware of—is that it's the engineers who design and run these systems. Engineers are the ones who understand where the real problems lie or could potentially arise. They work closely with domain experts to gain a deep understanding of the banking ecosystem and then go on to design the modern banking systems that power the entire industry today.

I can understand that it might be hard for some bankers to accept, but the truth is, engineers understand banking software far better than the bankers themselves.

 

[2025]

@Fini7777
After u get some update from bank let us know. Trying to increase my outdated knowledge on this. I hope u have asked bank to give u detailed calculation sheet.

I feel there are multiple issues related to interest accural, realisation, tax filling status, tax liability, overall interest income and threshold, types of FDs, interest on hold among others.

On tax front things are changing too fast. Can't blame anybody even if there is a mistake.
-----
@hender (I am not a native hindi speaker, I can't even write my name in Hindi).

 

[hender]

@Fini7777
After u get some update from bank let us know. Trying to increase my outdated knowledge on this. I hope u have asked bank to give u detailed calculation sheet.

I feel there are multiple issues related to interest accural, realisation, tax filling status, tax liability, overall interest income and threshold, types of FDs, interest in hold among others.

On tax front things are changing too fast. Can't blame anybody even if there is a mistake.
-----
@hender (I am not a native hindi speaker, I can't even write my name in Hindi).

@2025, Broken my heart 💔 दिल तोड़ दिया आपने।
Think 💬 about a poor man , who don't know, English, just a little little Hindi.
You were the last Hope in this vast Ocean of people with different languages and dialect. (Who will help now, if not you 🤔)

 

[CosmicCat]

@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.

• 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.

🔹 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

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?

Like I’ve always said in this forum, IndusValley Bank is hands down the poster child for how a bank should not function. It is a masterclass in how to turn simple banking into an Olympic-level patience test.

You put your hard-earned ₹1,00,000 in an FD, the maturity amount is supposed to be ₹1,12,370 — basic math, right? But no, this is Indus Valley, where numbers mean whatever they feel like on a given day.

₹1,08,880 is what actually lands in your account. No explanation, no statement line item, no note, nothing. You’re just expected to sit there and accept it like some clueless extra in the Indus Valley circus. And when you do the math, you see this random ₹2,125 has vanished. More than 10% of the interest, but apparently it’s not TDS.

And when you ask the Relationship Manager — the person who’s paid to give you answers — all you get is: “It’s not TDS, please check with Nodal Desk.”
That’s the Indus Valley customer service formula: when in doubt, pass the buck and hope the customer gives up.

This isn’t banking. This is daylight robbery dressed up as customer service. Silent deductions, no documentation, zero accountability — and they still expect you to “trust the process.”

Banks are supposed to handle money, not make it disappear like a street magician. But IndusValley Bank seems to think every FD maturity is an opportunity to pull another “now you see it, now you don’t” trick.

Trust me, if you’re banking with them, forget calculators — start investing in aspirin. You’ll need it.

And, good luck with your case!

 

[hender]

Trust me, if you’re banking with them, forget calculators — start investing in aspirin. You’ll need it.

" Health advice of the day"

 

[dvader]

BTW banking and Finance is a cost to society it doesn't do anything productive. When did it require more than basic math is beyond me. And 80% of them can't count the no of dic*s they have. (Spoiler alert it's 1)

Even the Indian Central Bank copies the west in monetary policies so no Harward math required there too.

Someone went over their head a little.

Banks are one of the most inept, incompetent and scammy institutions, that's why we need an overly strong regulator to reign in the dumb. If you ask me the banker who made that idiotic comment wouldn't be able to empty a glass of water with instructions at the bottom.

And leaving the inappropriate comment aside. The issue was not about the rules, everyone, their illiterate friends and their dogs know the rules. It's not a differential equation or tensor algebra. As @Fini7777 has pointed out the issue was something else.

 

[hender]

TF's "S. Tharoor"

BTW banking and Finance is a cost to society it doesn't do anything productive. When did it require more than basic math is beyond me. And 80% of them can't count the no of dic*s they have. (Spoiler alert it's 1)

Even the Indian Central Bank copies the west in monetary policies so no Harward math required there too.

Someone went over their head a little.

Banks are one of the most inept, incompetent and scammy institutions, that's why we need an overly strong regulator to reign in the dumb. If you ask me the banker who made that idiotic comment wouldn't be able to empty a glass of water with instructions at the bottom.

And leaving the inappropriate comment aside. The issue was not about the rules, everyone, their illiterate friends and their dogs know the rules. It's not a differential equation or tensor algebra. As @Fini7777 has pointed out the issue was something else.