Kindly advise me whether the interest accrued on savings a/c is taxable, as I have multiple savings a/c in various banks which is much higher than 10000. does it become income and if so should it be clubbed with FD interest as other sources of income. thanks GR Babu
6 Replies
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 08 July 2015
Amount in excess of 10K will be taxable as income from other source
Naman
(looking for job)
(38 Points)
Replied 09 July 2015
Sec 80TTA, Interest on Saving bank accounts is deductible upto Rs 10000 (FD is not included here). Rest is taxable as other sourse income.
NIKHIL GONSALVES
(Student CA IPC / IPCC)
(25 Points)
Replied 09 July 2015
BUT IF TAXABLE SLAB IS 20% OR MORE & THE BANK HAS CUT TDS ON 10%, IT IS OUR RESPONSIBILITY TO PAY SELF ASSESSEMENT TAX FOR BOTH FD & SAVING BANK
NIKHIL GONSALVES
(Student CA IPC / IPCC)
(25 Points)
Replied 09 July 2015
U/S TTA DEDUCTION AVAILABLE UPTO 10000 FOR SAVING BANK INTERST & FD ARE TAXABLE IF INTEREST ON SAME GOES BEYOND 10000 IN A FINANCIAL YEAR
sudhir ch. saha
(Service)
(105 Points)
Replied 11 July 2015
Int. on SB a/c firstly will be included in Income from others sources to find out gross total income . Then u/s 80 TTA , if amt of int.> 10,000/- , Rs. 10,000/- will be rebate from Gross income and excess of 10,000/- will be charged for i-tax @ 10% . In case of Int. on FD/RD , there is no rebate , full amt. will be added in Income from other source.
Sudhir Saha
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