The most commonly missed income
For years, many salaried Indians ignored their fixed deposit (FD) interest at tax time. They assumed that because the bank cut TDS, the job was done. The AIS (Annual Information Statement) has ended that assumption.
How your bank reports it
Every bank reports the interest you earn against your PAN, and it lands in AIS under Interest from Deposit. Even if you filed Form 15G/15H to stop TDS, the bank still reports the interest. No TDS does not mean no tax.
The numbers that bite
Banks deduct TDS at 10% once FD interest crosses Rs 40,000 in a year (Rs 50,000 for senior citizens) under Section 194A (Source: Income Tax Act, Section 194A). But TDS is only a part-payment; you owe tax at your slab rate.
| Your slab | Bank TDS | Extra you still owe |
|---|---|---|
| 5% | 10% | Nothing (may get a refund) |
| 20% | 10% | About 10% more |
| 30% | 10% | About 20% more |
What to do, step by step
- Download AIS at incometax.gov.in via Services > Annual Information Statement (AIS).
- Read the total under Interest from Deposit.
- Add it to your return under Income from Other Sources.
- Claim the TDS credit (cross-check it in Form 26AS).
- Pay any shortfall as self-assessment tax before you submit.
What you should do
Report the exact AIS figure, not a rounded guess. If the bank deducted TDS, claim it so you are not taxed twice.
Common mistake
Treating "TDS already deducted" as "fully taxed". A 30% slab taxpayer with only 10% TDS still owes the balance, and skipping it invites an automated mismatch notice.
How LastMinute ITR helps
LastMinute ITR pulls every interest line together and matches TDS to 26AS so you do not miss a rupee. Start at /file, import at /file/import/documents, and check gaps at /file/import/mismatch.
LastMinute ITR is a companion tool, not affiliated with the Income Tax Department. You file and e-verify your return yourself on incometax.gov.in.