Bank & SavingsLast Updated: September 2026•Read Time: 7 min read•Verified by NBR SRO & Tax Act 2023

Bank Account Interest TDS & PSR Rules: 10% vs 15% Withholding Tax

Banks deduct 10% TDS on interest for account holders with e-TIN and PSR, but 15% if PSR is missing. Excise duty rates and reporting requirements on annual returns.

Key Takeaways & Core Points

Submitting e-TIN and PSR keeps bank interest TDS at 10% instead of the punitive 15% rate.
Annual bank interest must be declared under Financial Assets Income.
Excise duty is automatically deducted by banks based on peak balance during the year.
Year-end bank statement balance must match your IT-10B asset report.

Every bank savings account, fixed deposit (FDR), and monthly scheme generates interest subject to withholding tax under the Income Tax Act 2023.

1. The 10% vs 15% Withholding Difference

Taxpayers who submit their return submission proof (PSR) to their bank branch enjoy a lower 10% withholding tax on interest, whereas non-compliant accounts suffer 15% deduction.

Frequently Asked Questions (FAQ)

Q: How do I get my bank tax deduction certificate?

A: You can download it directly from your bank's internet banking portal or request an annual tax certificate from your branch.

Conclusion & Tax Tips

Submitting your PSR to your bank protects your savings from excess withholding deductions.

Official Statutory References & Sources

Reviewed by Talukdar Academy Research Cell

All data, tax brackets, thresholds, and statutory interpretations in this article are compiled directly from the Bangladesh Income Tax Act 2023, Finance Ordinance 2026, and official NBR circulars.

NBR Official Portal

Official e-Return Portal

Income Tax Act 2023 Gazette