Saving bank interest up to rs.10,000/-

HI  DIMPLE ,

                     THERE IS NO SUCH PROVISION REGARDING CEILING LIMIT OF RS.10000/= IN RESPECT OF INT. SB A/C ,     ACCORDING TO SEC. 194A , TAX NEED NOT TO BE DEDUCTED ON THE INTEREST OTHER THAN ON TERM DEPOSIT PAID BY  THE BANKING COMPANIES & CO OPERATIVE SOCEITY

                    HOPE YOU WILL SATISFY BY THE ANSWER......

Dear Dimple,

Interest upto Rs.10,000/- in SB A/cs is tax-free for F.Y.2012-13(A.Y.2013-14).There are no conditions to avail of this benefit.Trust this clarifies.

Originally posted by : Balaji
	Dear Dimple, Interest upto Rs.10,000/- in SB A/cs is tax-free for F.Y.2012-13(A.Y.2013-14).There are no conditions to avail of this benefit.Trust this clarifies.

Agree with it.  There are not any conditions to follow dear ... nothing ..

well this condition was also same for last year as well ......

Because I had my fd and it's interest was not exceeding 10000 and I had not faced any difficulties like TDS or something ...

Dear Renu,

Interest on SB A/c and F.D. have different tax treatment.While interest upto Rs.10,000/- is tax-free in SB A/c, F.D. interest is fully taxable.In  bank F.D.,TDS is applicable only if the interest amount for the year exceeds Rs.10,000/- in a F.Y. per Bank and per Branch.All these are applicable for F.Y.2012-13.

Last year,i.e.in F.Y.2011-12, both SB interest and F.D. interest were fully taxable but TDS,again, was applicable on F.D. interest only if the total amount exceeded Rs.10 K for the year.

Thus there IS a change in SB interest rules but not for F.D. from last year to this year.

Hey Dimple,

the answer for your query is that a new section 80TTA has been inserted wef A.Y.2013-14, which provides a deduction upto Rs.10000 to an assessee being an Individual or HUF only in respect of interest from saving bank A/c , Post Office, or a Co-operative society , However no such deduction is available to AOP, firm etc..

Agree with Manish.

Sec 80TTA is the new section inserted w.e.f. FY 2012-13 for deduction of upto Rs 10000 from  SAVINGS bank accounts.

Thank you all for clarification. I got my query solved....