Resident Deposits

• In case of Resident Fixed Deposits, FSF and Cash Certificates applicable TDS shall be deducted from the interest credited to operative account/ term deposit periodically.
• Income tax will be deducted as per the law applicable and in case the depositor’s total income including the interest earned on deposit does not come under the purview of income tax, form 15H/15G together with PAN details has to be submitted by the depositor to the branch after opening the term deposit and at the beginning of the Financial Year in the subsequent Financial Years.
• With effect from 01 July 2011, for opening Term deposit exceeding Rs. 50,000/- with the bank, it is mandatory to quote Permanent Account Number of the customers or submit Form 60/61, duly signed, in case the customer has no PAN number. In the absence of PAN, Form 15G/H and other exemption certificates will be invalid even if submitted & TDS at the highest rate will be applicable.
• As per section 206AA introduced by Finance (No. 2) Act, 2009 effective April 01, 2010, every person who receives income on which TDS is deductible shall furnish his PAN, failing which TDS shall be deducted at the rate of 20% in case of Domestic deposits.
• Customer shall visit Federal Bank branch with his/her PAN card (original & copy) to get the same updated in bank records. Resident customers can also apply for PAN through Federal Bank Branches.