Whether income or not

Only interest amount..

principal is deemed to have been tax paid, from the bank view

only interest amount will be taxable

 

The interest is taxable on accrual basis. So you should offer pro rata interest to tax over the term of the deposit. For eg. If deposit amount is RS. 2 lacs and maturity amount is RS.2.5 lacs and term is 2 years, then RS. 25000 should be offered to tax in the first year and balance interest in the second year.

Only Interest income to be shown

Only interest portion is taxable, moreover logically if principle amount is taxed it will amount to double taxation as savings and investments are pre taxed money.

Here the principle will be treated as Investement and the intrest amount will be considered as income .