Balaji Subbu (SAP FICO) (220 Points)
02 August 2016Hello Professional Friends
2015-2016 I recd income from my SB account Rs 1200 as INTEREST
Please let me know
(i) in IT return under WHICH HEADING I should show above INCOME?
(ii) shall I get exemption for this SB ac interest income, if so what is the amount limit?
Adv Thanks regards
Balaji Subbu.
Deepak Gupta
(CA Student)
(15922 Points)
Replied 02 August 2016
1. Income from Other Sources.
2. Under section 80TTA, interest up to Rs. 10,000 earned from all savings bank accounts is exempt from tax.
Udgam Koomar
(Tax Technologist)
(1949 Points)
Replied 02 August 2016
income from other sources, get exemption under section 80TTA till 10000/-
Balaji Subbu
(SAP FICO)
(220 Points)
Replied 03 August 2016
Dear Deepak Gupta
Thanks for your excellent inputs
1. Exemption till Rs10K, ok, I understood from your answer
2. but I am not able to understand that, whether my interest income (Rs4K which is less than Rs10K) should be SHOWN or not?
3.if so, in ITR , WHERE is the palce >>>> income from SB ac interest?
4. I have EURO dollar -one time unusual income (recd from foregin trip) also. If I follow your above info, then my (i) Interest SB ac income + (ii) my Euro income, BOTH I should ADD and show UNDER income from other SOURCE?
Adv Thanks for you help
regards
Balaji Subbu
Deepak Gupta
(CA Student)
(15922 Points)
Replied 03 August 2016
2. Interest should be shown under ‘Income from Other Sources’ because it is a taxable income eligible for deduction u/s 80TTA.
Under deduction concept, the amount is first included in the gross income and then deduction is claimed, to the permissible limit, to arrive at the total income.
As per your understanding, its exempt income concept, where the income is not considered as a part of total income and the whole amount is exempt for the taxpayer. However, we need to report it in the ITR under exempt income for reporting purpose only.
So, first include 4K interest income under IOS and then claim deduction for the same. If interest is > Rs. 10,000 in a F.Y., the difference will attract tax. Since, your interest income from the savings accounts is < Rs. 10,000, you don’t have to pay any tax on it.
3. Where to report in the ITR?
ITR1: B3 - Income from Other Sources (net amount of OS)
ITR2: Schedule OS – 1b (Interest, Gross)
4. Wait for someone else to answer this query.
subhash kumar jha
(PROFESSION)
(445 Points)
Replied 03 August 2016
1st u need to take interest income as a part of your total income and thereafter u will ged deduction min(10000,Interest on Saving Ac)
Balaji Subbu
(SAP FICO)
(220 Points)
Replied 03 August 2016
Dear Deepak Gupta
Thanks for your GREAT and excellent explantions....
Question A: Please let me knowEXACTLY (with point numbers in IT Return) where I must state above 2 points
3. I had EURO dollar - Employer gave me for daily expenses (recd from foreign trip), but I did NOT spent. It is one time unusual income and exchanged through my bank in India around Rs 10,000. Per-diem allowances are non-taxable under section 10(14) of income tax.
Question B. Dear Deepak, will you please throw some light about point 3 is right or not?
Adv Thanks Deepak
regards
Balaji Subbu
CAclubindia
