Exemption us 10(26)

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51 Points Joined June 2017
Tds is deducted on interest from deposits, Mr A is exempted under 10(26) of IT Act. He is a pensioner, his salary is below taxable limit. How can he be exempted from the income earned under interest deposits. Which itr should he file and where should he show the deposits so as to exempt his deposit income( interest on deposit)?
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On 09 September 2024 at 15:44 Report
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Master in Accounts & high court Advocate
8756 Points Joined December 2011

Mr. A, a pensioner with a salary below the taxable limit, is exempted under Section 10(26) of the IT Act. To exempt his deposit income (interest on deposits), he can follow these steps: 1. _File ITR-1_: Mr. A should file ITR-1 (Income Tax Return for Individuals) as his income is below the taxable limit. 2. _Show deposits in Schedule SI_: In ITR-1, Mr. A should show the interest earned from deposits in Schedule SI (Details of Income from Sources other than Salary). 3. _Claim exemption under Section 10(26)_: In Schedule SI, Mr. A should claim the exemption under Section 10(26) for the interest earned from deposits. 4. _Provide deposit details_: Mr. A should provide the details of the deposits, such as the name of the bank, deposit account number, and interest earned, in the "Details of Exempt Income" section of Schedule SI. 5. _No TDS liability_: Since Mr. A is exempted under Section 10(26), there will be no TDS liability on the interest earned from deposits. Note: Mr. A should ensure that he meets all the conditions specified in Section 10(26) to avail the exemption.

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On 12 September 2024 at 19:20
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51 Points Joined June 2017
Thank you
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On 18 September 2024 at 15:54


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