Tax on FD Interest Calculator

Interest earned on fixed deposits (FDs) is taxable income under Section 56 of the Income Tax Act 1961, added to your gross income and taxed at applicable slab rates. Banks deduct TDS (Tax Deducted at Source) on FD interest automatically when annual interest exceeds 40000 rupees (50000 for senior citizens), providing advance tax payment. This calculator determines exact tax liability on FD interest considering your income slab and calculates TDS deduction, helping understand net interest received. For senior citizens, investing in FDs provides regular income stream with favorable TDS thresholds and tax benefits. Many investors underestimate tax on FD returns, expecting full interest withdrawal but receiving reduced amount after TDS. Understanding tax-adjusted FD returns helps compare with tax-free investments (PPF, Sukanya Samriddhi) and plan optimal allocation.