Every year in the months of June and July, Indian taxpayers would be rushing to file their Income Tax Returns. A common mistake which many taxpayers do is not declaring the interest earned on Fixed Deposits. This is partly due to the belief that a sum of ₹10,000 or lesser is not taxable. Also, banks do not deduct TDS when they don't expect interest income to go beyond ₹10,000 in a financial year. However, that is not true. Only interest up to ₹10,000 earned on SB (Savings Bank) account is exempt from income tax . The total amount earned needs to be mentioned in Section 80TTA. The exempt amount would be computed by the system / offline utility. Every rupee of interest earned on FD (Fixed Deposits) and RD / CD (Recurring / Cumulative Deposits) is taxable as per a person's income tax slab . All income earned through these instruments needs to be declared under the heading 'Income from Other Sources'.