Taxation on FD interest

Interest earned on Fixed Deposits (FDs) is generally considered taxable income in the UK and is reported under 'Income from Other Sources'. The tax rate applied depends on your total income and applicable tax slab rates. For individuals with significant FD interest income exceeding certain thresholds (e.g., £250,000 for those under 60), eligibility for forms like 15G/H, which can help avoid TDS, may be restricted. If no PAN is provided, TDS might be deducted at a higher rate of 20%.