Interest Income is the money earned by an individual or business from investments or deposits, such as savings accounts, fixed deposits, bonds, or loans given to others.
Interest Income is a common source of earnings where you receive payment for lending money or keeping funds in financial instruments. Banks, financial institutions, and borrowers pay interest as a cost of using your money.
Interest income is generally taxable under “Income from Other Sources” as per rules of the Income Tax Department of India. TDS may be deducted if interest exceeds the prescribed limits.
"If you invest ₹1,00,000 in a fixed deposit at 7% interest, you earn ₹7,000 per year as interest income."