Tax Saving Fixed Deposit FAQs

Q: At what rate is TDS deducted?

Applicable TDS rates are: Tax Rate Health and Education Cess TOTAL Resident Individuals & HUF 10% Nil 10% Corporate Entity 10% Nil 10% NRO/ foreign companies 30% 4% 31.2%* Firms 10% Nil 10% Disclaimers: As per section 206AA introduced by Finance (No. 2) Act, 2009 w.e.f. 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PAN, failing which TDS shall be deducted at rate of 20% in case resident individuals and domestic companies and 31.2% (plus surcharge wherever applicable) in case of NRO/ foreign company deposits. Tax laws are subject to change and amendments from time to time which may affect above rates. *Rate may further be increased by the surcharge wherever applicable.

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Frequently Asked Questions

How can I calculate the interest on my fixed deposit?

Access our online FD calculator and enter the amount and fixed interest rate offered to you. You will get the results within seconds.

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What is the rate of interest for fixed deposits with Kotak Bank?

The interest rate for fixed deposits with Kotak Bank varies with maturity period, deposit amount, type of depositor, etc. For instance, the rates on fixed deposits are higher for resident senior citizen individuals (age 60 years & above) compared to residing Indians under the age of 60 years, exception being FDs made through the feature of ActivMoney or Non-withdrawable FD, whereby senior citizen rate benefit is not offered)

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What are the minimum amount and maximum amount I can deposit in a fixed deposit?

At Kotak, you can start a fixed deposit with a minimum amount of Rs. 5,000.There isn’t any maximum limit for the fixed deposit amount.

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Can I withdraw my FD before maturity?

Yes, we have an option for premature withdrawal from fixed deposit (Except for tax saving or Non-withdrawable FD)

However, As per the Terms & Conditions of the bank for premature withdrawal, interest will be paid at the rate prevailing on the date of deposit for the tenure the deposit or the withdrawn amount remained with the bank or at the contracted rate, whichever is lower, after deducting applicable penal charge for premature withdrawal

As per Terms & Conditions of Fixed Deposit Accounts of the Bank, the penal charge on premature closure of Fixed Deposits including partial closure has been fixed by the bank as below on Fixed Deposits booked/ renewed on or after 20th May, 2022.

Tenure of Fixed Deposit	Penalty
Less than equal to 180 days	Nil
Greater than 180 days to less than or equal to 364 days	0.50%
Greater than or equal to 365 days	1.00%

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Does any change or enhancement in my deposit portfolio affect TDS liability?

TDS is deducted every time the Bank pays/re-invests interest during the financial year. TDS is also deducted on unpaid interest accrued at the end of financial year viz. 31st March.

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At what rate is TDS deducted?

Applicable TDS rates are:

	Tax Rate	Health and Education Cess	TOTAL
Resident Individuals & HUF	10%	Nil	10%
Corporate Entity	10%	Nil	10%
NRO/ foreign companies	30%	4%	31.2%*
Firms	10%	Nil	10%

Disclaimers:
As per section 206AA introduced by Finance (No. 2) Act, 2009 w.e.f. 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PAN, failing which TDS shall be deducted at rate of 20% in case resident individuals and domestic companies and 31.2% (plus surcharge wherever applicable) in case of NRO/ foreign company deposits. Tax laws are subject to change and amendments from time to time which may affect above rates.

*Rate may further be increased by the surcharge wherever applicable.

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How and when can I apply for exemption on TDS?

When your total interest income for the year is within basic exemption limits, you should inform the bank not to deduct TDS on deposits.

You can do this by submitting a form/ certificate from tax authorities as per the provisions of the Income Tax Act. The forms required for different categories have been listed below:

Category of Account	Form Required
Individual/ HUF	Form 15G/15H
Companies	Certificate u/s 197
Others	Certificate u/s 197

Disclaimers:

You have to obtain Certificate u/s 197 Form from the Income Tax department.
Even if the customer submits the Form 15G/ 15H/certificate u/s 197, the tax which has already been deducted by way of TDS during the year prior to submission of such Forms/ certificates will not be refunded by the bank. However, TDS Certificates in Form 16A will be issued to the customers which can be used while filing his/her income tax return.
Form 15G/ 15H/Certificate u/s 197 are valid only for the particular financial year in which they are issued.
A fresh Form 15G/15H needs to be furnished for each deposit that is placed with the Bank during the financial year.

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When does the Bank issue a TDS Certificate?

TDS certificates in Form 16A will be sent by the Bank on your registered email ID if the same is available. In case registered email ID is not available then the same will be sent by post/ courier on your registered address. TDS certificates can also be downloaded by logging into your net banking account.

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Can the account be opened in a joint account with a non-senior citizen?

Yes, provided the first account holder is a senior citizen.

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What documentation is required to open a senior citizen Fixed Deposit?

While opening the account, the customer needs to provide proof of age establishing that he/she is a Senior Citizen. To accomplish this, either of the following can be submitted:

Secondary School Leaving Certificate
LIC Policy
Voters Identity Card
Pension Payment Order
Birth Certificate issued by the competent authority
Passport
Defense ID Card/Government ID Card (Provided they have the cardholder's photo, signature and date of birth)
PSU Issued ID Cards
Senior Citizen Cards issued by Indian Airlines/Indian Railways
PAN Card

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Can I open a Fixed Deposit through NetBanking if my PAN details are not updated with the bank?

Through Net Banking, Fixed Deposit can be booked by any applicant subject to PAN is updated with the Bank for the Primary applicant in which the Fixed Deposit is getting booked.

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What are the implications of booking a Fixed Deposit without PAN?

In the absence of PAN, following are the implications for customers:

TDS will be recovered at 20% or the applicable higher rate (as against 10%)
NO TDS credit from the Income Tax department
NO TDS credit from the Income Tax department
Form 15G/H and other exemption certificates will be invalid and TDS at higher rates will apply

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