is fixed deposit taxable?
Hi,
Yes, the interest you earn on a fixed deposit is taxable in India. The bank deducts TDS (Tax Deducted at Source) if the total interest from all your FDs in a year crosses ₹50,000 (₹1,00,000 for senior citizens).
For example, if you have multiple FDs across different banks and the combined interest in a financial year is ₹55,000, the bank will deduct 10% TDS (if you’ve given them your PAN). But even if your bank doesn’t deduct TDS, you still have to declare the interest income in your Income Tax Return and pay tax as per your slab rate.