# FD and KVP interest remains taxable under 2025 tax law

2026-08-07T09:56:09+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

Interest from fixed deposits and Kisan Vikas Patra will remain taxable under the Income Tax Act, 2025, which applies from 1 April 2026, Livemint reports. Both are taxed under “Income from Other Sources” at the investor’s applicable slab rate. Banks must deduct tax at source on FD interest once the prescribed threshold under Section 393 is crossed, including interest accrued on cumulative deposits. KVP interest does not attract TDS, but investors must still report the full taxable amount in their income tax returns. TDS is only advance tax collection and does not settle the final liability, which depends on total income and the applicable slab.

## Coverage

- livemint.com <https://www.livemint.com/money/personal-finance/fd-and-kvp-tax-rules-explained-tds-taxable-interest-and-key-differences-11786084839019.html>

Tags: fixed deposits, Income tax, Kisan Vikas Patra, personal finance, TDS
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