Fixed deposits have always been an investor’s favorite because of its assured returns on their investment. That could be one of the reasons why they are still around and that too in many flavors. The varieties of FDs are listed in the following:


Now when you know about their types, let us look at the various ways to save tax deductions. In FDs taxes are deducted under – income from other source. According to 80C of the Income Tax Act the sum that you invest is exempted but if the interest exceeds the Rs. 10,000/- mark in a fiscal year then TDS will be at 10% p.a. But there are some ways by which you can prevent Tax Deduction at Source.

The ways to save TDS are:

  • By submitting Form 15G/15H. If you have no taxable income then you can submit this form and your TDS wouldn’t be deducted. For senior citizens it is Form 15H.

  • Split your investment into two. One should be your personal account and the other should be the HUF account, if you have an HUF account.

  • Management of your FD account. Proper management of your FD account must be done regarding the tenure, etc.

If you take these steps then you can easily avoid on TDS on FD.