Your FD interest is taxable your TDS refund shouldn't be optional
Banks deduct flat TDS on your FD, RD and NRO interest. Most people never claim it back. SSA TAX reconciles every rupee against your AIS & Form 26AS, applies every 80TTA/80TTB deduction you're entitled to, and files it right the first time.
+ Govt Fees · interest income filing
The Basics
What is Interest Income?
Interest income is the money you earn by lending your money to a bank, a financial institution, or even an individual. This includes interest from savings accounts, fixed deposits, recurring deposits, bonds, corporate deposits, and informal loans to friends or family.
All interest income is taxable in India and must be reported in your ITR whether or not TDS was deducted on it.
Do You Need to File an ITR?
WHAT CHANGED
New Interest Income Rules & Regulations in 2026
TDS thresholds on bank interest went up in FY 2025-26, and from 1st April 2026 the entire TDS framework moved under the new Income Tax Act, 2025. Here's what's different from what you may remember filing last year.
Higher TDS thresholds on bank interest
From FY 2025-26, banks deduct TDS only above ₹50,000 interest for regular individuals (up from ₹40,000) and ₹1,00,000 for senior citizens (up from ₹50,000) per bank, per financial year.
Non-bank payer threshold raised too
For interest paid by anyone other than a bank, post office or co-operative society such as a private loan the no-TDS threshold has been raised from ₹5,000 to ₹10,000.
Section 194A is now Section 393
Under the Income Tax Act, 2025 (effective 1st April 2026), the old Section 194A TDS-on-interest provision is consolidated into the new Section 393 framework.
Form 15G/15H to become Form 121
The familiar declarations to avoid TDS Form 15G (below 60) and Form 15H (60 and above) are being replaced by a unified Form 121 under the new Act from FY 2026-27.
80TTA / 80TTB only under the old regime
The new tax regime is the default choice and it does not allow the ₹10,000 (80TTA) or ₹50,000 (80TTB) interest deduction. You must actively opt for the old regime to claim it.
Savings account interest stays TDS-free
Interest credited to a savings account is exempt from TDS regardless of amount but it's still fully taxable income above your 80TTA/80TTB limit, and must be declared.
ITR Filing Due Dates AY 2026-27
Deductions You Can Claim
| Section | Benefit |
|---|---|
| 80TTA | Up to ₹10,000 on savings interest (under 60, old regime only) |
| 80TTB | Up to ₹50,000 on all interest (60+, old regime only) |
| Others | PPF/EPF/specified post office interest stays exempt |
Documents Required
- Bank passbook or interest certificates
- FD & RD statements from all banks
- Form 26AS & AIS (Annual Information Statement)
- TDS certificates (Form 16A)
- Loan agreements, if earning interest privately
Interest Income Filing vs. Other Tax Compliances
Clients often ask how reporting interest income relates to other registrations and forms. Here's the difference, side by side.
| Compliance | Purpose | Who Needs It | Frequency |
|---|---|---|---|
| Interest Income Reporting | Declares interest earned and claims TDS credit/refund | Anyone earning FD/RD/savings/loan interest | Annually, with ITR |
| Form 15G / 15H (→ Form 121) | Stops TDS deduction at source if income is below taxable limit | Individuals/seniors below taxable income | Each financial year, before interest is paid |
| TAN Registration | Required for entities deducting TDS on interest/salary etc. | Businesses, employers, certain individuals | One-time |
| GST Registration | Authorises GST collection on goods/services unrelated to interest income | Businesses crossing turnover threshold | One-time |
| ITR Filing (Overview) | Declares all income, including interest, for the year | Everyone above exemption limit | Annually |
How It Works
Your Interest Income, Filed Correctly in 4 Steps
Share Your Statements
Send bank passbooks, FD/RD statements and TDS certificates.
We Reconcile AIS & 26AS
Every entry is matched against your Annual Information Statement.
Deductions Applied
80TTA/80TTB and the right regime choice calculated for maximum benefit.
Filed & Refund Tracked
Your ITR is filed, e-verified, and refund status tracked till it lands.
What Makes SSA TAX Different From Other Filing Companies?
Most agents just copy your Form 16 numbers and ignore interest income entirely until you get a notice. Here's exactly where we do it differently.
Typical Agents
- Skip cross-checking AIS/26AS against actual bank interest
- Miss 80TTA/80TTB regime-fit calculations entirely
- Don't flag multi-bank TDS mismatches before filing
- No follow-up once the return is submitted
- Charge extra for "additional income sources"
SSA TAX
- Every bank's interest entry reconciled against AIS & Form 26AS
- Old vs new regime compared so you keep every eligible deduction
- Multi-bank TDS mismatches flagged and resolved before filing
- Refund tracked end-to-end, even after filing is done
- Transparent ₹499 pricing interest income included, no surprises
AIS-first accuracy
We pull your Annual Information Statement and match it line-by-line against your bank interest before filing the single biggest reason interest-income notices happen, solved upfront.
Regime comparison
We calculate both old and new regime outcomes so 80TTA/80TTB isn't left on the table by default.
Updated for 2026 law
From Section 393 to Form 121, our team tracks every change as the new Act rolls out.
1.03 Lakh+ clients
Across salaried professionals, senior citizens, and multi-bank investors nationwide.
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Recognised as a Forbes Modern India Game Changer, 2024.
Key Compliance Dates AY 2026-27
| Compliance | Due Date |
|---|---|
| File ITR non-audit case (includes interest income) | 31st July 2026 |
| File ITR audit case | 31st October 2026 |
| Form 15G / 15H (each financial year) | Before interest is paid/credited |
| Belated return | 31st December 2026 |
FAQ