Tax on long term deposits

This discussion clarifies the tax implications for long-term deposits where interest is reinvested. It explains that income from such deposits is typically taxed on an accrual basis, meaning you're liable for tax each year as the interest accumulates, not just at maturity. Banks also deduct Tax Deducted at Source (TDS) on an accrual basis. You can verify TDS details through your AIS or 26AS statement.