Tax on saving account interest

Page no : 2

PRABHAKAR TRIPATHI (REGISTRAR) (32 Points)
Replied 09 July 2011

I belive if Interest is more than 10,000 in a year, it is taxable, But it amount to be a part in total income from other sources , to may reach under taxable range.

Thanks

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deepak kumar srivastava (na) (281 Points)
Replied 09 July 2011

DEAR VIKAS SIR

INTEREST ON SAVING A/C BALANCE IS TAXABLE UNDER THE HEAD OTHER SOURCES

BECAUSE TAX IS NOT DEDUCTIBLE ON THIS INTEREST AS PER SEC-194A BY THE PAYING BANK

IT IS THE FIXED DEPOSIT INTEREST ON WHICH TAX IS DEDUCTED BY THE PAYING BANK IF SUCH INTEREST EXCEEDS 10000

SO U HAVE TO INCLUDE SUCH INEREST ON SAVING A/C BALANCE IN THE INCOME FROM OTHER SOURCES THEN CALCULATE TAX ON YOUR TAXABLE INCOME AS PER THE PROVISIONS OF INCOME TAX ACT

A K Jain (Service) (160 Points)
Replied 09 July 2011

Yes in simple language Bank interest is to be added in your taxable income . However Bank will deduct TDS only on FDs if interest is more than Rs 10000.

N V SRIPATHI BHAT (AGM (retd)) (32 Points)
Replied 09 July 2011

The interest earned on SB & RD are exempted only from deduction of tax at source (TDS) by bankers.

However, it is taxable as income by the assessee.

VIJPS (manager) (95 Points)
Replied 11 July 2011

Thanks Jain and Deepak for your prompt reply .

As Mr. Prabhaker given comment that if saving interest more than 10,000 in a year, it is taxable, But it amount to be a part in total income from other sources.

Since my saving bank interest is less than 10,000 ( Rs .5020), Should i need to pay tax ?

Any Comment is appreciated

thanks

vikas

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 11 July 2011

after deletion of sec 80L, all interest income is taxable from Rs 1/- under "income from other sources" however interest from Post Office Savings Bank is exempted under 10(15)i ( now exempted upto 3500 only thereafter taxable).