New Delhi, May 9 -- Fixed deposit interest remains a key source of passive income for many Indians, but it also attracts tax rules under the Income Tax Act. From TDS thresholds and PAN requirements to Form 15G/15H exemptions, here's what FD investors must know to avoid unnecessary tax deductions.

TDS is short for Tax Deducted at Source. It is a procedure by which the bank that holds your fixed deposit deducts a part of the interest earned for payment of taxes. This tax is then debited to the government's account by the bank without you having to pay any extra costs, explains SBI life

Under Section 194A of the Income Tax Act, banks deduct TDS at 10% on FD interest income if the total interest earned exceeds Rs.50,000 in a financial year....