Tax rules for fixed deposit interest in Australia and India

Both Australia and India require individuals to declare interest earned on fixed deposits in their income‑tax returns. In Australia, interest from term deposits, savings accounts and other sources must be reported as other income in the year it is received, credited or reinvested, and no deduction is allowed for the interest itself.

In India, fixed‑deposit interest is added to total income under "Income from Other Sources" and taxed according to the taxpayer’s slab. TDS is deducted at 10% for amounts over ₹50,000 (₹1 lakh for senior citizens) under Section 194A, with a higher rate if the PAN is not supplied. Tax‑saving FDs allow a deduction of up to ₹1.5 lakh on the principal under Section 80C, while senior citizens can claim up to ₹50,000 on interest under Section 80TTB.

Both jurisdictions advise retaining bank statements, Form 26AS and other documents to accurately report the interest and claim any applicable deductions or TDS refunds.