Archive · 19 Jul 2026
FD Interest Taxable in ITR 2026
If you earned interest from fixed deposits (FDs) in the financial year 2025-26, you must report it when you file your income tax return (ITR) by July 31, 2026.
This interest is fully taxable and must be included under 'Income from other sources'.
You can check your FD interest through bank statements or tax forms.
Banks deduct tax (TDS) if your interest exceeds ₹50,000 (or ₹1 lakh for senior citizens).
Senior citizens and those with no taxable income can use Form 121 to avoid TDS.
The tax you pay depends on your income slab and whether you choose the old or new tax regime.
Interest from fixed deposits is fully taxable and must be reported in ITR 2026 by July 31, 2026.
FD interest is reported under 'Income from other sources' and taxed at the applicable income tax slab rate.
Banks deduct TDS at 10% if interest exceeds ₹50,000 for general citizens and ₹1 lakh for senior citizens.
Senior citizens can claim a deduction of up to ₹50,000 on FD interest under Section 80TTB.
Form 121 replaces Form 15G and 15H for claiming relief from TDS on FD interest.
- Who
- Taxpayers with fixed deposit interest income
- What
- Reporting and taxing FD interest income in ITR 2026
- When
- Due by July 31, 2026
- Where
- India
- Why
- To comply with tax laws and avoid penalties
- Taxable Interest
- Interest from fixed deposits is fully taxable
- Reporting Deadline
- July 31, 2026
- Tax Head
- Income from other sources
- TDS Threshold
- ₹50,000 for general citizens, ₹1 lakh for senior citizens
- TDS Rate
- 10% with PAN, 20% without PAN
- Deduction Limit
- ₹1.5 lakh under Section 80C
- Senior Citizen Deduction
- Up to ₹50,000 under Section 80TTB
- New Form
- Form 121 replaces Form 15G and 15H
