A non-senior citizen has Fixed Deposits with multiple banks and is not eligible to submit 15G due to expected total interest exceeding the threshold limit. He does not have any tax liability when he files ITR. Now, in one bank there is no TDS as the interest payable is less than ₹40,000/- and another bank deducts tax where the interest payable exceeds Rs. 40,000/-. In such cases, is the person required to inform the bank which does not deduct tax to deduct TDS? If so is there any notification form (similar to 15G) to submit to the bank?

As per income tax laws, a bank is required to deduct tax at source @ 10% on the amount of interest being paid/credited to a resident if the aggregate of interest likely to be paid/credited by all its branches exceeds Rs. 40,000/- in a year. So the bank does not have to deduct any tax as long as the aggregate interest for all its branch taken together on all deposits taken together is within the threshold limit of Rs. 40,000/-.

A resident Individual who has not completed 60 years of age can submit form no. 15G to the bank for payment of interest without deduction of tax at source provided an aggregate of interest likely to be received by him during the year is not likely to exceed the amount of basic exemption limit applicable to him. For those opting old tax regime, the basic exemption limit is Rs. 2.50 lakh and for those opting for the new tax regime, it is Rs. 3 lakhs.

However, in case a person is not eligible to submit form no. 15G to the bank you are not required to request the banks to deduct tax on interest in case the interest from all the deposits for all the branches taken together does not exceed Rs. 40,000/- in a year.