Income tax on fixed deposit interest in India
The interest income generated from fixed deposits in India is fully taxable if you are in the tax bracket. The bank is bound to deduct TDS on the interest amount paid after maturity of Fixed deposits if the interest amount exceeds Rs 10000.
If you do not fall under the Tax bracket then you can instruct your bank to not to deduct TDS on Interest income by submitting form 15G. For senior citizens the from to be submitted is 15H. This form needs to be submitted to the bank every year.
A sample of both the type of forms can be downloaded from the links provided in the below table. More information on form 15G / 15H
|Specimen Of Form 15h & 15g Free Download|
|Form 15 G download in excel Format||Form 15 G in XLS Format|
|Form 15 H download in excel Format||Form 15 H in XLS Format|
So income generated as interest from all kinds of fixed deposits is fully taxable as per applicable tax brackets. You can only instruct your bank not to deduct TDS on interest income, but it will form part of your total taxable income ( it will be added in the head ‘other income’)