Tax rate on interest from savings account

Seth (M) (148 Points)

12 June 2012  

Hello,

 

 

What is the exact taxing process for interest earned on savings and Fixed deposits? 
I have 3 savings bank accounts and none have deducted TDS. 
One bank interest income is around 26K, other around 7K and other 600 making it a total interest income of Rs. 33,600.
None of the banks have deducted TDS. 
I am in highest 30% tax bracket with salary income more than 10Lakhs and form 16 received from employer.
 
Is it correct that there is an exemption for first 10,000 so tax should be paid for remaining 23,600? At what rate is tax to be paid for such interest income?
 
Will really appreciate if some can help on calculation mechanism for how much extra tax should I pay due to this interest income of 33,600 Rs. 
 
Thanks