{"id":11692,"date":"2026-07-26T17:49:53","date_gmt":"2026-07-26T12:19:53","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=11692"},"modified":"2026-07-26T17:49:59","modified_gmt":"2026-07-26T12:19:59","slug":"itr-filing-2026-fixed-deposit-interest-is-fully-taxable-heres-how-to-report-it-without-mistakes","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/itr-filing-2026-fixed-deposit-interest-is-fully-taxable-heres-how-to-report-it-without-mistakes\/","title":{"rendered":"ITR Filing 2026: Fixed Deposit Interest Is Fully Taxable – Here’s How to Report It Without Mistakes"},"content":{"rendered":"\n
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Synopsis:<\/strong> FD interest is fully taxable and must be reported under “Income from Other Sources” in the ITR for FY 2025-26, due July 31, 2026. This article breaks down where to check the FD interest income, how they are taxed, TDS on FD interest and how to avoid TDS.<\/em><\/p>\n<\/blockquote>\n\n\n\n

Any earned interest on fixed deposits during FY 2025-26 has to be declared in the income tax return, which is due on July 31, 2026 for salaried individuals and pensioners not requiring an audit. FD interest is fully taxable, and banks report it directly to the tax department and any mismatch caused between the declaration by the tax payer and the bank which has already reported can trigger a query or notice. Here’s a complete breakdown of how FD interest is taxed, where to verify the exact amount, and how TDS rules work this year.<\/p>

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Where to Check FD Interest Income<\/strong><\/h2>\n\n\n\n
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  • Bank statements or FD certificates<\/strong> from each bank where the deposits are held<\/li>\n\n\n\n
  • Form 26AS<\/strong>, which shows tax deducted at source against the PAN<\/li>\n\n\n\n
  • Annual Information Statement (AIS)<\/strong> and Taxpayer Information Statement (TIS)<\/strong>, both accessible on the income tax e-filing portal<\/li>\n<\/ul>\n\n\n\n

    Since multiple FDs across different banks are common, cross-checking AIS against all the bank records helps identify any discrepancy before filing.<\/p>\n\n\n\n

    How FD Interest Is Taxed and Where It Goes in the ITR<\/strong><\/h2>\n\n\n\n

    FD interest falls under “Income from Other Sources”<\/strong> in the ITR form. Under the old tax regime<\/strong>, a five-year tax-saving fixed deposit\u2019s principal invested, is eligible for deduction under Section 80C<\/strong>, within the overall \u20b91.5 lakh limit that also covers PF, ELSS, life insurance premiums, and other eligible investments. It’s worth noting this deduction applies only to the principal in a five-year tax-saver FD, regular FD interest itself doesn’t qualify for any deduction under 80C.<\/p>\n\n\n\n

    Extra Deduction for Senior Citizens<\/strong><\/h2>\n\n\n\n

    Resident senior citizens who opt for the old regime get an additional benefit under Section 80TTB<\/strong>, a deduction of up to \u20b950,000 on interest earned from savings accounts, fixed deposits, and recurring deposits combined. So if total interest income is \u20b935,000, that’s the maximum you can claim, not the full \u20b950,000.<\/p>