Fixed deposits are a favored investment in India, offering stability and predictable returns. However, many investors overlook the impact of Tax Deducted at Source (TDS) on their interest income. TDS not only reduces the immediate returns but also hampers the power of compounding, leading to significant losses over time. For instance, an investment of ₹10 lakh at a 7% interest rate could yield about ₹19.67 lakh after ten years without TDS. However, with a 10% TDS deduction, the effective return drops to approximately 6.3%, resulting in a loss of nearly ₹1.25 lakh over the same period. To mitigate this, depositors can file Form 15G or Form 15H, which allow them to declare their income and potentially avoid TDS deductions, provided they have no tax liability. It is crucial to submit these forms at the beginning of the financial year and to account for total interest across all banks. If TDS has already been deducted, taxpayers can recover the excess amount by filing their income tax returns, provided their tax liability is lower than the deducted TDS. Overall, timely and accurate filing of these forms can preserve the compounding potential of savings, leading to substantial financial gains over time.