Aazim lakhani (Software Engineer) (46 Points)
29 June 2013Hi Experts,
As we know, for FY : 2012 - 13, saving account interest of upto 10k is exempted from tax. But do we need need to show this interest in ITR, under tax exemped section ? If yes, then we need to show this under which section ?
Regards,
Zim
Zoya Khan
(ABC)
(800 Points)
Replied 29 June 2013
Show it under IOS and deduct it from deductions u.s 80.
CA Vinay parmar
(Chartered Accountant)
(1318 Points)
Replied 29 June 2013
In the new Income tax return you will find additional section 80TTA you will get Rs.10000/- deduction under this section
CS RAJESH C.CHOUDHARY
(ASSISTANT MANAGER)
(14607 Points)
Replied 29 June 2013
it will be exempt u/s 80 TTA only
Aazim lakhani
(Software Engineer)
(46 Points)
Replied 29 June 2013
Hi Zoya,
Thanks for your prompt reply. I'm not sure where IOS section is . I saw a section named Schedule EI (Details of Exempt Income), which have a field for Interest Income. I have mentioned it there. Could you confirm that its right.
Regards,
Aazim
CA Vinay parmar
(Chartered Accountant)
(1318 Points)
Replied 29 June 2013
| Originally posted by : Aazim lakhani | ||
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Hi Zoya, Thanks for your prompt reply. I'm not sure where IOS section is . I saw a section named Schedule EI (Details of Exempt Income), which have a field for Interest Income. I have mentioned it there. Could you confirm that its right. Regards, Aazim |
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No Aazim thats wrong Schedule EI relates to exempt income you cant show it over there.
You have to show interest ob Saving a/c under the head income froom other sources, and there after you have to claim deduction under Chap VI A u/s 80TTA to the extent of the Interest income or Rs.10000/- which ever is lower.
Aazim lakhani
(Software Engineer)
(46 Points)
Replied 29 June 2013
Thanks a ton Vinay. Under Income From Other Sources, do I need to mention the interest for the savings account under gross interest ? . And then , mention the interest from savings accounts under section 80 TTA ?
Regards,
Zim
CA Vinay parmar
(Chartered Accountant)
(1318 Points)
Replied 29 June 2013
| Originally posted by : Aazim lakhani | ||
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Thanks a ton Vinay. Under Income From Other Sources, do I need to mention the interest for the savings account under gross interest ? . And then , mention the interest from savings accounts under section 80 TTA ? Regards, Zim |
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Yes Aazim now you are right, but keep in mind that you will get dedction u/s 80 TTA to the extent of Interest on Saving a/c OR Rs.10000/- which ever is low.
Ankit Gupta
(Learner)
(1557 Points)
Replied 29 June 2013
The Interest part recieved from savings bank account is normally added in the preparation of ITR, and is now deductible also u/s 80TTA from AY13-14.
So, add the income from savings bank interest to INCOME FROM OTHER SOURCES and deduction also upto Rs.10000 u/s 80TTA.
Regards.
Sam Sam
(n/a)
(27 Points)
Replied 11 July 2013
saving account interest and FD interest will be treated same or different in the context discussed above?
Ankit Gupta
(Learner)
(1557 Points)
Replied 11 July 2013
| Originally posted by : Sam Sam | ||
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saving account interest and FD interest will be treated same or different in the context discussed above? |
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Dear,
Savings account interest and FD's interest both are incomes and to be shown under the "income from other sources"
And as far as deduction u/s 80TTA is concerned, only savings bank interest upto Rs.10000 can be deducted if any.(and not FD interest), becoz FD interest is taxable.
Hope i am clear.
Regards.
CA Rohit Maurya
(Associate)
(213 Points)
Replied 12 July 2013
First of all for Saving bank interest dedction is provided and not exemtion and hence it should be first included in IFOS and than deduction will be provided.
best of luck.
CAclubindia
