Tax on Bank Interests

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Arun Gupta (Querist)

11 July 2007 For the AY-2007-08 (FY 2006-07) what is the rule related to Tax on the Bank interests earned from savings/fd accounts. Is there some minimum amount over which the total interest is taxable or the entire figure is chargeable as part of income?

Amit Thapar

Amit Thapar (Expert)

11 July 2007 If you are talking about TDS then if it is 5000 or less then no TDS. Above 5000, TDS on entire amount @10.20%
If talking about tax other than TDS, then no exemption, entire amount is taxable.

Sanjeev Kumar Varshney

Sanjeev Kumar Varshney (Expert)

12 July 2007 The No deduction u/s. 80 L is available from the AY 2006 - 07. However w.e.f 1st June 2007, the exemption limit for TDS purpose has been increased to Rs 10000/- from Rs 5000/-

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)

13 July 2007 The entire amount earned by way of bank interest is taxable. Neither deduction nor exemption is available. But interest earned from S.B A/c though fully taxable is not subject to TDS even it exceeds Rs. 10,000 in a financial year.

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