Taxability of interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2013 Hi

whether Interest on amount kept in capital gain a/c scheme of SBI is taxable or not ? SBI has not deducted any TDS as i have seen form 26AS that means it is saving a/c interest. Please advice me on this.I need explain someone about this.Thank you in advance

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 June 2013 Interest is taxable. There are two types of account namely -
i) Deposit account -A. This is in the form of a savings account. Hence income tax will not be deducted from the interest,

ii) Deposit account -B. This is in the form of 'term deposit'. Therefore, TDS provisions u/s 194A attracts.

depos

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2013 Thank you sir,

but deduction of Rs 10000 is available on saving a/c interest right?

Anand

Anand (Expert)
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19 June 2013 Yes for AY 2013-14 you can claim a deduction of Rs. 10,000/- u/s 80TTA for interest on savings accounts

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2013 Thanks Anand. Now i am very clear about taxability of interest Capital gain a/c scheme

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