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Tax on Bank Interest

Arun Gupta (Software) (17 Points)

11 July 2007

For AY 2007-08 what is the rule to calculate the tax on Bank Interests earned from savings/FD deposits. Is there a limit like 5000 over which the tax is charged on Interest or is it to be taken as part of income and will then be eligible for tax as per the slabs

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5 Replies

tushar jain (Service) (107 Points)
Replied 11 July 2007

any interest from bank or FD shall be taxable under the head Income from other sources

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Arun Gupta (Software) (17 Points)
Replied 12 July 2007

So you mean there are no minmum limits such as 5000 and all teh interest is chargeable as per the relevant tax slab?

Shyam Lal Naik (Service) (6156 Points)
Replied 13 July 2007

Dear Mr. Arun, Mr. Jain's reply and your understanding there to is correct. The old section 80L, providing deduction to Bank interest has been deleted from the statute book.