Fixed deposit interest is taxable at slab rates; TDS applies above ₹40,000 (₹50,000 for seniors); report all interest in your ITR.
This infographic explains the taxation of fixed deposit (FD) interest in India. FD interest is taxed as ‘Income from Other Sources’ and added to your total income, taxed at your applicable slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens), or 20% if PAN is not provided. Submit Form 15G/15H to avoid TDS if your income is below the taxable limit. All interest, even if TDS is deducted, must be reported in your ITR, and any additional tax liability must be paid accordingly.