FD Interest Tax Calculator Sri Lanka

FD Interest Tax Calculator Sri Lanka

Estimate how much tax your bank may deduct from your fixed deposit interest and how much interest you may actually receive.

Enter your fixed deposit details

Enter your FD amount, annual interest rate, and term. Then click Calculate to estimate your interest before tax, tax deducted by the bank, and interest after tax.

Example: 1000000 for LKR 1 million.
Example: enter 10 for 10% per year.
Use 12 for one year, 6 for six months, etc.
Optional. Used only to estimate whether you may ask the bank not to deduct tax.
Some people may be able to ask the bank not to deduct tax if their total income is below the taxable threshold.
Interest Before Tax LKR 0
Tax Deducted by Bank LKR 0
Interest You Receive After Tax LKR 0
Total Amount at Maturity LKR 0
Monthly Interest Before Tax LKR 0
Monthly Interest After Tax LKR 0
Total Income Check LKR 0
Bank Tax Rate Used 10%
Enter your FD details and click Calculate.
In simple terms, this is the tax the bank may deduct before paying your FD interest. The Inland Revenue Department may refer to this as AIT or WHT.

Calculation breakdown

This table updates after you click Calculate.

Calculation step Formula / basis Estimated amount
Click Calculate to see the breakdown.

Understanding FD interest tax

What does “tax deducted by bank” mean?

When your bank pays fixed deposit interest, it may deduct tax before paying the interest to you. For example, if your FD interest is LKR 100,000 and the bank deducts 10%, you may receive LKR 90,000 after tax.

Why do people call it AIT or WHT?

AIT means Advance Income Tax. WHT means Withholding Tax. Both are tax terms. For normal users, it is easier to think of it as tax deducted by the bank before you receive your FD interest.

Can everyone avoid this deduction?

No. Some resident individuals may be able to submit a self-declaration to the bank asking them not to deduct this tax, especially if their total income is below the taxable threshold. Always confirm with your bank or IRD first.

Formula used

  1. Interest Before Tax = FD Amount × Annual Interest Rate × Term Months ÷ 12
  2. Tax Deducted by Bank = Interest Before Tax × 10%
  3. Interest After Tax = Interest Before Tax − Tax Deducted by Bank
  4. Total Amount at Maturity = FD Amount + Interest After Tax
  5. Total Income Check = Other Annual Income + Annual FD Interest
This calculator is for educational estimates only. It does not replace IRD guidance, bank requirements, tax return filing, exemptions, or professional advice.
Source note: The Inland Revenue Department may refer to this deduction as AIT or WHT. This page uses simpler wording so normal users can understand it easily.