Whether interest on stdr is taxable?

STDR: A kind of saving scheme with SBI wit lock in period of 5 years- mainly purchased to save tax.

Special Term Deposits / Tax Saving Deposits are made to avail the tax benefit u/s 80C(2)(xxi).
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Such term deposits are framed in line with ‘Bank Term Deposit Scheme, 2006’. As per sl. no. 15 of the aforesaid scheme,
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(1) Interest on these term deposits shall be liable to tax under the Act, on the basis of annual accrual or receipt, depending upon the method of accounting followed by the assessee.
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(2) The tax on such interest shall be deducted in accordance with the provisions of section 194A or section 195 of the Act.