New Delhi, June 28 -- Fixed deposits are one of the most popular investment options in India as they offer assured returns and a relatively safe avenue for those looking to park their money away from market volatility. They are widely preferred by conservative or risk-averse investors, retirees, and those seeking predictable returns without taking on major investment risk.

However, the interest earned on FDs is fully taxable and must be declared in your income tax return (ITR) under the head 'Income from Other Sources'. This income is taxed as per the taxpayer's income tax slab rate regardless of whether TDS has already been deducted by the bank.

If you failed to disclose FD interest while filing your ITR for financial year (FY) 2024-25...