Interest on FD [ Term deposit or recurring depost]

Go with AIS report, if the interest certificate issued by bank matches with it.

I have two questions on the subject.

1. Is this income taxable?
2. If yes, then ..... One of my colleagues has gained interest of about 65,000/- from Postal term deposit, which is duly reflected in his AIS. While paying the advance tax, this amount could not be taken into account, resulting in a shortfall of about 20,000/-
Now, will this shortfall invite an interest u/s 234B/ 234C ?

1. Yes, taxable.

2. Yes, chargeable.