Interest income from saving bank and fixed deposit is taxabl

No, interest on fixed deposit is not exempt.

Yes, interest on saving account is exempt upto Rs. 10,000 pa u/s 80TTA.

Yes,Mihir sir is right.income by way of interst on savings account not being a time deposit is exempted up to 10,000

It is effective from F.Y 2013-14

Hi,

I fall in 10% tax slab and bank has deducted TDS on my FD. But I didnt mention it in my ITR-V. When I checked my Form 26 AS, I found that bank has deposited it with IT Dept. Will any penalty be imposed on me? Do I need to file revised return? Please help as tomorrow is last date.

Thanks

yes.. u have to file a revised return any time within 1 year from the  end of the relvant AY

Thanks Anita.

But as the bank has already deposited the TDS with IT dept and I dont have any Tax due, so will there be any issue if I dont file a revised return? 

Mr. Deepak, it is correct that bank has deducted tax as it is asked to do so by the Act. But, it does not relieve you to make the complete disclosure of your income. It will tantamount to non-compliance and as a result concealment of income.

About Revised Return

A revised return can be filed at any time before the expiry of 1 yr from the end of the relevant AY or before the completion of the assessment, whichever is earlier. Provided you have filed the original return u/s 139(1).

I would suggest you to disclose the same in revised return. Just file revised return and be at ease.

I have a similar doubt. I have interest on my saving acount as Rs 4500 and Interest earned on Fixed deposit(FD) is 7500.

So 10,000 exempt is from the total interest earned, in my case 12000(7500+4500). So Taxable amount will be Rs 2,000. Since interest on saving and interest on Fixed Deposite are from different banks so they have not deducted any TDS.

Can someone please help me with this.

As per sec-194A of tds every banking company to which banking regulation act apply shall not deduct tds on :-

Such incomes credited or paid in respect of deposits Other Than Time Deposits i.e fixed deposits

Hence a banking company shall not deduct tax on interest income on saving a/c balance &recurring deposits.

Therefore in my view bank employee is right

Now the questions is whether such interst income is taxable in the hands of assesse

1. Sec-191 says assesse shall be liable to pay tax directly himself as per the provision of income tax act if there is no provision in the chapter of tds for such income

 2.therefore in my view it is taxable if it is not exempted u/s 10(15) or any other clause of sec-10

I hv read the sec-10(15) there is no exemption for such interest .

Conlusion the assesse himself has to include such income in his GTI then apply the taxing provisions

CONCLUSION

1 INTEREST ON TIME DEPOSIT WITH A BANKING COMPANY------

       IF INTERSET INCOME DOES NOT EXCEED 10000 THE PAYER SHALL NOT DEDUCT TDS

2 INTEREST ON TIME DEPOSIT SHOULD BE INCLUDED IN GTI THEN APPLY THE TAXING PROVISION

2 INTEREST ON OTHER DEPOSIT THE PAYER SHALL NOT DEDUCT TDS

3 INTEREST ON SAVING A/C FIRSTLY SOULD BE INCLUDED IN G T I THEN AS PER SEC-80TTA DEDUCTION IS AVAILABLE UPTO 10000