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Yes, as per the Indian Tax Laws defined under the Indian Income Tax Act, 1969, the interest returns you earn from Rs. 10 Lakh FD are taxable. The interest is subject to 10% TDS, and the financial organisation where you hold the FD account will deduct the tax amount before crediting the interest amount to your account.
However, the TDS is applicable only if the interest earned from your FD is more than Rs. 40,000 in a financial year. For senior citizens, the limit is Rs. 50,000.
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