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Saving bank interest up to rs.10,000/-

Dimple Kotak (Accounts & Tax ) (185 Points)

24 June 2012

There is no tax on savings bank interest up to 10,000/-. this is applicable from which A.Y.? are there any conditions?

Please clarify

Thanks

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9 Replies

RAVI KUMAR GUPTA (STUDENT) (46 Points)
Replied 24 June 2012

HI DIMPLE ,

THERE IS NO SUCH PROVISION REGARDING CEILING LIMIT OF RS.10000/= IN RESPECT OF INT. SB A/C , ACCORDING TO SEC. 194A , TAX NEED NOT TO BE DEDUCTED ON THE INTEREST OTHER THAN ON TERM DEPOSIT PAID BY THE BANKING COMPANIES & CO OPERATIVE SOCEITY

HOPE YOU WILL SATISFY BY THE ANSWER......

1 Like

Deepak Parsai (Future CA) (623 Points)
Replied 24 June 2012

Ravi gupta, yes there is new no tax on saving bank interest upto 10,000 and perhaps from f.y. 2012-13 it is applicable, not sure about year.

Balaji (Knowledge Seeker) (317 Points)
Replied 24 June 2012

Dear Dimple,

Interest upto Rs.10,000/- in SB A/cs is tax-free for F.Y.2012-13(A.Y.2013-14).There are no conditions to avail of this benefit.Trust this clarifies.

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 25 June 2012

Originally posted by : Balaji
	Dear Dimple, Interest upto Rs.10,000/- in SB A/cs is tax-free for F.Y.2012-13(A.Y.2013-14).There are no conditions to avail of this benefit.Trust this clarifies.

Agree with it. There are not any conditions to follow dear ... nothing ..

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 25 June 2012

well this condition was also same for last year as well ......

Because I had my fd and it's interest was not exceeding 10000 and I had not faced any difficulties like TDS or something ...

Balaji (Knowledge Seeker) (317 Points)
Replied 25 June 2012

Dear Renu,

Interest on SB A/c and F.D. have different tax treatment.While interest upto Rs.10,000/- is tax-free in SB A/c, F.D. interest is fully taxable.In bank F.D.,TDS is applicable only if the interest amount for the year exceeds Rs.10,000/- in a F.Y. per Bank and per Branch.All these are applicable for F.Y.2012-13.

Last year,i.e.in F.Y.2011-12, both SB interest and F.D. interest were fully taxable but TDS,again, was applicable on F.D. interest only if the total amount exceeded Rs.10 K for the year.

Thus there IS a change in SB interest rules but not for F.D. from last year to this year.

CA.MANISH AGARWAL (Executive Officer (Accounts) ) (45 Points)
Replied 25 June 2012

Hey Dimple,

the answer for your query is that a new section 80TTA has been inserted wef A.Y.2013-14, which provides a deduction upto Rs.10000 to an assessee being an Individual or HUF only in respect of interest from saving bank A/c , Post Office, or a Co-operative society , However no such deduction is available to AOP, firm etc..