FD Interest Tax Calculator Sri Lanka

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FD Interest Tax Calculator Sri Lanka

Estimate fixed deposit interest, bank tax deduction, monthly interest, and the amount you may receive at maturity.

Enter your fixed deposit details

Enter your fixed deposit amount, annual interest rate, term, and bank self-declaration status. The calculator updates instantly while you type.

≈ LKR 20.00 million Enter the amount placed in the fixed deposit.
Example: enter 10 for 10% per year.
Use 12 for one year, 6 for six months, etc.
Optional. Add salary, business profit, rent, or other annual income if you want to check possible self-declaration eligibility.
Most people should choose “No / Not sure” unless their bank has accepted the declaration.
Interest before bank tax LKR 2,500,000 For selected FD period
Tax deducted by bank LKR 250,000 10% bank tax rate used
Interest you receive after tax LKR 2,250,000 ≈ LKR 2.25 million
Total amount at maturity LKR 22,250,000 FD amount + interest after tax
Monthly interest before tax LKR 208,333 Interest before bank tax ÷ months
Monthly interest after tax LKR 187,500 Interest after bank tax ÷ months
Total income check LKR 2,500,000 Other annual income + annual FD interest before tax
Self-declaration status Bank tax likely applies No accepted declaration selected
Effective bank tax rate 10% Tax deducted ÷ interest before bank tax
Annual FD interest before tax LKR 2,500,000 Used for self-declaration income check
Based on the details entered, your fixed deposit may earn about LKR 2,500,000 before bank tax for the selected period. The estimated tax deducted by the bank is LKR 250,000, so the estimated interest you receive after tax is about LKR 2,250,000.
Plain English: the IRD may call this AIT or WHT. For normal users, it simply means tax deducted by the bank before paying your fixed deposit interest.

Calculation breakdown

This table updates instantly while you type. If JavaScript is blocked, it updates after you click Calculate.

Calculation step Formula / basis Estimated amount
Fixed deposit amount Amount entered by user LKR 20,000,000
Annual interest rate Rate entered by user 12.50%
FD term Selected period in months 12 months
Interest before bank tax FD amount × annual rate × term months ÷ 12 LKR 2,500,000
Tax deducted by bank Interest before bank tax × 10% LKR 250,000
Interest you receive after tax Interest before bank tax − tax deducted by bank LKR 2,250,000
Total amount at maturity FD amount + interest after tax LKR 22,250,000
Monthly interest before tax Interest before bank tax ÷ term months LKR 208,333
Monthly interest after tax Interest after tax ÷ term months LKR 187,500
Annual fixed deposit / bank interest before tax FD amount × annual rate LKR 2,500,000
Other annual assessable income Amount entered by user LKR 0
Self-declaration income check Other annual income + annual FD interest before tax LKR 2,500,000
Threshold used for simple check Personal relief / no-tax declaration guide threshold LKR 1,800,000
Bank self-declaration selection Selected by user No / Not sure

Understanding FD interest tax

What does “tax deducted by bank” mean?

When a 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. For normal users, both terms refer to 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 tax, especially if their total income is below the taxable threshold. Always confirm with your bank or IRD first.

Formula used

  1. Interest Before Bank Tax = FD Amount × Annual Interest Rate × Term Months ÷ 12
  2. Tax Deducted by Bank = Interest Before Bank Tax × Bank Tax Rate
  3. Interest After Tax = Interest Before Bank Tax − Tax Deducted by Bank
  4. Total at Maturity = FD Amount + Interest After Tax
  5. Monthly Interest After Tax = Interest After Tax ÷ Term Months
  6. Income Check = Other Annual Income + Annual FD Interest Before Tax
Educational estimate only. This calculator does not replace IRD guidance, bank requirements, tax return filing, tax credit treatment, exemptions, special resident/non-resident rules, legal advice, or professional tax advice.
Source note: This calculator uses a simple 10% bank tax / AIT estimate on interest and a simple self-declaration income check for normal users. Always confirm the final treatment with the bank or IRD.
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