Tax on interest on savings a/c
Suraj (819 Points)
04 July 2012Suraj (819 Points)
04 July 2012
CA.Saibaburao Nanduri
(Chartered Accountant)
(3847 Points)
Replied 04 July 2012
Dear SURAJ!
You have rightly expressed that in recent budget, it was announced that interest on savings a/c will be exempt up to Rs. 10,000/- from FY 2012-13.
The Government has introduced a new Section 80TTA. The new section shall come in to force with effect from 1st day of April 2013. That means from the assessment year 2013-14.
It is also to be noted carefully that this interest exemption is not extended to ‘time deposits’ (fixed deposits).