income from savings bank account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2011 sir

i am a software engineer and self-employed. I have received my payments in sb a/c and earned some interest in sb a/c around 2700 on yearly basis.

should i include the interest amount in my total income from my services or exclude ? As per my knowledge the interest upto Rs.10000/- is exempted from tax.

thanking you,

U S Sharma

U S Sharma (Expert)
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17 July 2011 savings bank account interest is to be added with taxable income and tax to be paid.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 July 2011 There is no exemption for savings bank account interest earned from bank's. It has to be offered fully as income for income tax purposes.

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CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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18 July 2011 Exemption is from the provisions of TDS and not from payment of taxes. Your saving bank interest is requierd to be include in to tal income and also you need to pay taxes thereon.