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Tax on interest from saving bank

Goongan (Student) (450 Points)

20 January 2008

Whether interest received by individual from saving bank taxable under income tax. If yes under which head and section .are answer will change if it was Currant account. Another question is that, whether interest on tax refund taxable….

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19 Replies

Venkatesh Rao (Service) (135 Points)
Replied 21 January 2008

interest earned is taxable u/s80L

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CA Deepak Rajdev (Service) (32 Points)
Replied 21 January 2008

Interest from Saving Bank will be taxable under the Head OS. Refer to Sec 56 of the Income Tax Act. Earlier the Deduction for the same was available under sec 80 L but the same has been not been avaialable as on today.

Manek Amit (370 Points)
Replied 21 January 2008

i am fully agree with Mr. Deepak rajdev

CA S Sundararajan (CAO) (536 Points)
Replied 21 January 2008

1.Taxable under the head IFOS and no deduction can be avail since Sec 80 l has been rescinded.

2.Which Bank is provide interest to Current account?

Diwakar Mishra (Accountant) (136 Points)
Replied 21 January 2008

Yes Interest recd on saving bank accounts are taxable under the head Income from Other Sources Excess refund (Interest) recd are also taxable under the head Income from Other Sources

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(Guest)

The Interest received on saving account with a bank will be taxed as Income from Other Sources. However no interest is payable by any bank on Current account. The interest received from income tax department is also taxed under the same head of income ie Income from Other sources

Kirti (Chartered Accountant) (37 Points)
Replied 22 January 2008

Interest on saving bank has limit of Rs. 10000 per branch. as per IT circular. it is taxable under IFOS

Irshad (Article) (1426 Points)
Replied 22 January 2008

Its taxable under the head Income from Other Sources(section 56).I dont think any bank provides interest on Current account...

(Guest)

is the intrest earned in saving bank acccount taxable and at what rate?

(Guest)

i got saving bank intrest from my saving bank for rs. 14090/- this amount is taxable or not please guide me REGARDS VINOD

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Rakesh Kumar Srivastava (Service) (0 Points)
Replied 27 July 2008

What is rate of Income Tax for Interest on Saving Account/

Rakesh Kumar Srivastava (Service) (0 Points)
Replied 27 July 2008

Originally posted by :Diwakar Mishra

Yes
Interest recd on saving bank accounts are taxable under the head Income from Other Sources

Excess refund (Interest) recd are also taxable under the head Income from Other Sources

What is the rate of income tax on interest on savin Account?

(Guest)

Originally posted by :Dharmbeer Kumar
"	Whether interest received by individual from saving bank taxable under income tax. If yes under which head and section .are answer will change if it was Currant account. Another question is that, whether interest on tax refund taxable….	"

Ashish (Professional) (117 Points)
Replied 13 September 2008

Guys, little confused, please clear the doubt. Rs 10000/- interest is non-taxable.

Suppose, I earned Rs 9000 interest from Fixed Deposits and earned Rs 900 from savings bank account so those Rs 900 will be taxable or cumulative it becomes Rs 9900 which is less than Rs 10000/- so non-taxable.

Please answer this query ind detail. Thanks