Earlier, there was no TDS applicable on the bank recurring deposits. In the Union Budget 2015-16 has altered the definition of Time Deposits to include Recurring Deposit.
Now, TDS will be deducted on the recurring deposits if the interest exceeded Rs 10,000 for the year.
However, the government proposes to promote the recurring deposits scheme and there is no TDS is deducted on Post Office Recurring Deposit Scheme.
Government is taking various measures on continuous basis to promote and popularize all small savings scheme including Post Office Recurring Deposit Scheme through electronic and print media.
Individuals looking for monthly savings on regular basis can choose post office recurring deposits instead of bank recurring deposits.
While, you would have to add the interest so earned to determine your tax liability in the future.