Mr. Sudhir Kumar is right.
Kindly elaborate the matter. Thus the members/experts shall have better feel of the query and response can be quick and specific.
It is guessed that:
>> The Bank has released the funds in the a/c of the deceased.
>> If the released funds are kept in FD of another depositor say: Son of the deceased, then the funds shall be subjected to tax treatment as per prevailing rules in the hands of current holder of the funds that is earning interest.
>> If the funds are in the name of deceased depositor then the following guidelines issued by RBI may be looked into
Master Circular on Customer Service
20.4 Treatment of flows in the name of the deceased depositor
20.5 Interest payable on the deposit account of deceased depositor
These guidelines and others should be displayed in the bank, maintained at website of the bank and a printed version should be provided to the customer.