If I earn ₹32,000 in interest from a fixed deposit annually, am I required to pay TDS on it?

40k is the threshold for individuals for interest income

50k for seniors.

Neither you have to pay any TDS Nor Bank will deduct.

P.S. 40/50k is for each bank not for consolidated interest amount of all banks

If you have fixed deposits (FDs) with three different banks, and each FD generates interest income of Rs. 40,000 or less in a financial year, you won't be subject to tax deduction at source (TDS) under section 194A of the Income Tax Act.

According to the provisions of section 194A, TDS is applicable only when the total interest income from all FDs with a particular payer or bank exceeds Rs. 40,000 in a financial year. In your case, since each bank account generates interest income of Rs. 40,000 or less, the total interest income from all three banks would be Rs. 120,000 (Rs. 40,000 + Rs. 40,000 + Rs. 40,000), which is below the threshold for TDS deduction.

However, it's important to note that you are still required to report the interest income from all the FDs in your income tax return, even if TDS is not deducted. The interest income will be included in your total income and taxed according to the applicable income tax slabs.

For example, if you have three FDs with Bank A, and the interest income from each FD is Rs. 20,000, the total interest income from Bank A would be Rs. 60,000. In this case, TDS would be applicable on the excess amount of Rs. 20,000 (i.e., Rs. 60,000 - Rs. 40,000).

It's important to note that the TDS rate for section 194A is 10% for individuals, and if your total income falls below the taxable limit, you can submit Form 15G/15H to the bank to avoid TDS deduction.

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Thanks Guys for information

If the FD is renewed or new FD is generated during the financial year do we need to submit the form 15g again or just once during April

First of all, you don't pay tds. The banks deduct tds before they pay you the interest on deposits.

You don't have to worry about your bank deducting tds, if your interest income in a bank is less than 40K per year.

Even if you TDS is deducted by anyone, while filing your IT return, if your taxable income is less than 7.5L, then you will get refund. Else you have to pay tax according to the tax slab.

Please download Form 26AS. You will get a lot more than you imagine, even secret bank account information, so beware! 😃

Tax will need to be paid regardless if income exceeds 7.5L

You don't pay TDS. It gets deducted on its own and interest earned from FD is taxed as per your tax slab

Case-1 : if less than 40k interest earned.

The interest earned from that FD you should decalre while filing ITR.

Currently system auto filling this FD and Savings Bank account interest in the ITR form by AIS.

So this interest is auto included and get taxed as per your tax slab.

Case-2 : Intrest more than 40k.

Banks only will debit TDS on top of this. TDS automatically reflects in ITR.

Thanks Guys

I am a student  with no salary

meine ek fantasay app mei invest kiya tha jo nft based hai jiska naam Rario hai

mera Nft based app mei

mera tax 1100 bn rha hai

muje income tax barna padega ya nhi

plz clear my doubt

TDS - Tax Deducted at Source. So, you don't need to pay it, the bank needs to deduct that at the time of interest credit.