Tax on Bank Interests

This query is : Resolved

Arun Gupta (Querist)
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11 July 2007 For the AY-2007-08 (FY 2006-07) what is the rule related to Tax on the Bank interests earned from savings/fd accounts. Is there some minimum amount over which the total interest is taxable or the entire figure is chargeable as part of income?

Amit Thapar

Amit Thapar (Expert)
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11 July 2007 If you are talking about TDS then if it is 5000 or less then no TDS. Above 5000, TDS on entire amount @10.20%
If talking about tax other than TDS, then no exemption, entire amount is taxable.

Sanjeev Kumar Varshney

Sanjeev Kumar Varshney (Expert)
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12 July 2007 The No deduction u/s. 80 L is available from the AY 2006 - 07. However w.e.f 1st June 2007, the exemption limit for TDS purpose has been increased to Rs 10000/- from Rs 5000/-

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CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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13 July 2007 The entire amount earned by way of bank interest is taxable. Neither deduction nor exemption is available. But interest earned from S.B A/c though fully taxable is not subject to TDS even it exceeds Rs. 10,000 in a financial year.