Fixed Deposit New Rules 2026: new fixed deposits of ₹10 lakh or more in a financial year by a person need to be reported by the bank or the post office to the Income-tax Department in the statement of financial transactions. However, this limit does not apply to fixed deposit renewals.

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No reporting is mandatory for cash deposits of ₹10 lakh or more by a person in his/her fixed deposit account, provided the person is holding a PAN card. For non-PAN holders, this limit is ₹5 lakh.

What is mandatory to be reported under draft Income-tax Rules 2026?

Here’s what the draft rules say with respect to high-value fixed deposit transactions:

1. Cash deposits in one or more accounts (other than a current account and time deposit) of a person

Cash deposits in a financial year in one or more account of a person, aggregating to

• ₹10 lakh or more for a person having a permanent account number;
• ₹ 5,00,000 or more for a person not having a permanent account number

2. One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person

• Amount aggregating to ₹10 lakh or more in a financial year, for a person

Please note that the draft rules are currently open for public feedback and they may see some changes before final implementation with effect from April 1, 2026.

Is this new?

The existing Income-tax rules 1962 also have an almost similar provisions with respect to reporting of high-value FD transactions by bank customers.

Here’s what it says

• One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to ₹10 lakh or more in a financial year of a person.
• Cash deposits aggregating to ₹10 lakh or more in a financial year, in one or more accounts (other than a current account and time deposit) of a person.

When Will Your Fixed Deposit Be Reported?

As per draft guidelines, reporting may happen in the following cases:

• If total FD deposits in a financial year cross a specified limit.
• If large cash deposits are made in Fixed Deposits.
• If interest income from FDs is significantly high but not reflected properly in tax returns.
• If there is mismatch between declared income and investments.

Banks already report certain high-value transactions under Statement of Financial Transactions (SFT). The new draft rules may widen the scope further.

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What Is the Possible Reporting Limit?

Though final notification is still awaited, experts believe:

• Deposits above ₹10 lakh in a financial year may come under reporting.
• High cash-based FD investments could be under strict watch.
• Interest income is already taxable as per slab rates.

Final limits will be confirmed once official rules are notified.

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Final Words

Fixed Deposits remain a safe investment option. The draft Income Tax Rules 2026 are mainly targeting high-value transactions, not small savers.

If you maintain proper tax discipline, there is no need to panic. Stay informed, file your taxes honestly, and your FD investment will remain smooth and secure.

Frequently Asked Questions (FAQs)

Disclaimer

This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.

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