If I have interest income totalling to Rs2.5 lacs. I have annual PPF investment of Rs 1lac. So Rs 1lac of PPF can be deducted from the interest income. So do I have to pay tax @ 10% on bal Rs 1.5 lacs. Or only if the bal amount crosses Rs2lacs and more.
Check 26AS. TDS might be deducted from your interest income. You shall be eligible for a refund because your income is below tax slab (2 lacs) provided you file your return.
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