As farr as I know, tax on interest earned on FDs is 10.2 % (for below 10 Lacs) and 11.2 % (for above 10 Lacs). Also tax is deducted when interest payable or reinvested per customer, per branch, exceeds Rs 5,000 in a financial year.
But i nthe article it is written that interest is added to income and taxed with the relevent tax bracket.
