Is interest on FD taxable?
Yes. The interest on fixed deposit is fully taxable except in case of '5-Year Tax Saving Fixed Deposit' scheme offered by financial institutions where the investment amount gets locked for 60 months and the interest rate is also lower as compared to normal term deposits. The income you earn, is added to your total income and taxed at slab rates, applicable to your total income. It is then, shown under ‘Income from Other Sources’ in your Income Tax Return. In addition to Income Tax, banks and companies also deduct TDS on your interest income.