RD maturity and TDS basics for bank deposits
Maturity is principal plus taxable interest
A recurring deposit pays a contracted rate if you finish the tenure. The RD calculator shows an estimated maturity. For a resident individual, the interest portion is generally taxable at slab rates even when it is paid only at the end. TDS by the bank is a collection mechanism against thresholds and declarations—not the final tax bill.
TDS vs what you owe
If interest across deposits at a bank crosses the TDS trigger for the year, the bank may withhold unless a valid Form 15G/15H (where eligible) is in place. You still report interest income and claim credit for TDS when you file. Senior-citizen thresholds and bank practices differ—read the deposit advice rather than a forwarded WhatsApp rule.
Fold RD interest into a yearly sketch
Estimate interest from the RD calculator (and other deposits), then add it as other income in the income-tax calculator for a rough regime compare. Premature closure can change interest and may attract penalties the simple maturity figure ignores.
Results from FinanceChacha are estimates for planning, not financial or tax advice. Read the disclaimer.
Try the calculators
Open a calculator this guide refers to and run your own numbers.