FIXED DEPOSIT BY HDFC BANK

For Fixed Deposits booked with monthly or quarterly interest payout option, TDS recovery will happen automatically from your linked HDFC Bank account.

No. You cannot change the tenure once the Fixed Deposit account has been opened. Therefore, select the Fixed Deposit tenure after giving it some thought and calculation.

Check the deduction rates below:

If the interest amount is not sufficient to recover TDS, then a hold will be marked on the Fixed Deposit for the applicable TDS amount. The TDS will be recovered on the next interest payout, partial FD closure, premature closure or when sufficient funds are available in the Current or Savings Account. If you wish to have the TDS recovered from your Current or Savings Account, you can do so by filling out a separate declaration at the branch.

The TDS Certificate and Form 16A for TDS deducted during a calendar quarter will be issued in the next month of the respective quarter.

Yes, in case the of reinvestment deposits, the interest reinvested is post-TDS recovery. Therefore, the maturity amount for reinvestment deposits would vary to the extent of tax and the compounding effect on tax for the period after deduction till maturity.

In the absence of PAN, you may face several implications, such as:

• TDS will be recovered at 20% (as against 10%)
• No TDS credit from the Income Tax department
• No TDS certificate will be issued (As per CBDT circular no: 03/11)
• Form 15G/H and other exemption certificates will be invalid, and penal TDS will apply

If your total interest income for the year does not fall within the overall taxable limits, you should let us know. You can do this by submitting a form as per the provisions of the Income Tax Act.

A few things to note:

• You can get the 15AA form from the Assessing Officer of the Income Tax department.
• Even with the 15H/15AA form, the tax that has already been deducted by way of TDS during the year prior will not be refunded. However, you will get a certificate, which can be used while filing your tax return.
• 15H/15AA Forms are valid only for the financial year in which they are issued.
• A fresh 15G/H form needs to be completed for each deposit. It/these should be completed within the first week of the financial year.

You can liquidate your Fixed Deposits through NetBanking. This facility would be available to Fixed Deposits held under a "Sole Owner (SOW)" relationship only.

Following are the steps for liquidating your Fixed Deposit online:

• Access your NetBanking account with your Customer ID and IPIN (NetBanking Password)
• Select "Liquidate Fixed Deposit " option under the Fixed Deposit menu from the Menu bar located on the left-hand side of the webpage
• Select the Fixed Deposit account number from the drop-down list
• Once complete, click on "Continue" and "Confirm" the details entered
• A new webpage confirming the Liquidating Fixed Deposit will be displayed.

Further, kindly note that:

• Fixed Deposits in the name of non-individuals are not allowed for liquidation through NetBanking.
• Fixed Deposits in the joint name cannot be liquidated online.

• Where the total value of Fixed Deposit per customer ID is <= 50,000 (including the new FD being booked), No PAN and no Form 60 are required.
• Where the total value of Fixed Deposit per customer ID is > 50,000 (including the new FD being booked), PAN is required mandatorily.

If the aggregate interest that you are likely to earn for all your deposits held across branches against a customer ID is greater than ₹ 40,000/- in a financial year, you become liable for TDS.

Note: Tax liability for TDS purposes is determined basis per PAN and not as per branch per PAN. Deposits held by minors are also subject to TDS. The credit for the TDS can be claimed by the person in whose hands the minor's income is included.

Yes, you can now make a nomination while booking Fixed Deposits through NetBanking.

• If you are booking a Fixed Deposit on NetBanking on a single name, then you can either select the nomination made in the base Savings account or add a new nominee.
• If you are booking a Fixed Deposit on NetBanking in a Joint name, then you can only select the nomination made in the base Savings account. To add a new nominee you will need to visit the branch.
• For Fixed Deposits held in single name, customers can add a new nominee or modify a nominee through NetBanking instantly.
• For Fixed Deposits held in joint names, customers can download the filled Nomination form from NetBanking, have the form signed by all signatories and submit it any HDFC Bank Branch.