Dear Sir,

Interest received from Banking company is always taxable. Bank is liable to deduct TDS from the payee incase total interest credited to the assessee's a/c exceeds Rs. 10,000 in a particular FY. That too the said provision applies only for Interest received on Time deposit. But this has nothing to do with the taxability of Interest in the hands of the assessee. 

Originally posted by : Vishal Kirthic
	Dear Sir, Interest received from Banking company is always taxable. Bank is liable to deduct TDS from the payee incase total interest credited to the assessee's a/c exceeds Rs. 10,000 in a particular FY. That too the said provision applies only for Interest received on Time deposit. But this has nothing to do with the taxability of Interest in the hands of the assessee.

AGREED & SUCH INT IS TAXABLE UNDER THE HEAD INCOME FROM OTHER SOURCES.

Originally posted by : Vishal Kirthic
	Dear Sir, Interest received from Banking company is always taxable. Bank is liable to deduct TDS from the payee incase total interest credited to the assessee's a/c exceeds Rs. 10,000 in a particular FY. That too the said provision applies only for Interest received on Time deposit. But this has nothing to do with the taxability of Interest in the hands of the assessee.

agreed                 

There is exemption only from tax deduction at source and not on payment of taxes.

agree with vishal

Thanks to all of u but are they intentionally misguiding to customer or not knowing about rule ? One Bank employee in front of me even asked to their Helpdesk & confirm that it is non taxable.For a common man ,it is really difficult to understand all rules but after assessment he may be required to pay penalty. Even I have seen that tax payers are filing Form no. 15G on advice of Banks.I have one communication in writing from senior person of govt. bank advicing me to file the same .

Agreed with these views.

You can also refer this discussion

/forum/details.asp?mod_id=150481&offset=2

Please dont ignore one thing here , bank have tax saving fd which have minimum period of saving 5 years . such fd is having deduction u/s 80C.
 

Originally posted by : A K Jain
	Thanks to all of u but are they intentionally misguiding to customer or not knowing about rule ? One Bank employee in front of me even asked to their Helpdesk & confirm that it is non taxable.For a common man ,it is really difficult to understand all rules but after assessment he may be required to pay penalty. Even I have seen that tax payers are filing Form no. 15G on advice of Banks.I have one communication in writing from senior person of govt. bank advicing me to file the same .

AS you have asked the "bank employee" regarding applicability of "tax on interest" so they have replied the correct "treatment of interest for tax by banks". 

to know about YOUR TAXABILITY you have to approach a ca or PRO of incometax, not the bank.

Every type onf Interest from Bank taxable & TDS deduct by Bank Except TDS Case on RD A/c

Originally posted by : Vishal Kirthic
	Dear Sir, Interest received from Banking company is always taxable. Bank is liable to deduct TDS from the payee incase total interest credited to the assessee's a/c exceeds Rs. 10,000 in a particular FY. That too the said provision applies only for Interest received on Time deposit. But this has nothing to do with the taxability of Interest in the hands of the assessee.

agree