Agreed with the views of other members........

Please refer to my query regarding applicability of tax on interest earned thru saving & RD a/cs.Two same replies were received from a Private Bank stating that it is non taxable. Then again I wrote them to confirm from their CA otherwise I will refer to Income Tax deptt. Their third reply states that

"As confirmation received and as informed to you in earlier mail, interest earned through savings account and Recurring Deposit (RD) account is exempted for tax."

How to deal with these fellows who are misleading the customers?

Originally posted by : A K Jain
	Please refer to my query regarding applicability of tax on interest earned thru saving & RD a/cs.Two same replies were received from a Private Bank stating that it is non taxable. Then again I wrote them to confirm from their CA otherwise I will refer to Income Tax deptt. Their third reply states that "As confirmation received and as informed to you in earlier mail, interest earned through savings account and Recurring Deposit (RD) account is exempted for tax." How to deal with these fellows who are misleading the customers?

they are neither making fool nor misleading anybody, 

as a depositor / account holder you are asking your tax query to banker, and as per their banking incometax they are not eligible to deduct incometax on RD/SB, so their reply is 100% correct.

they are neither aware of your taxable income, nor the ITR filing status of yourself, how they can comment on the issues which is not in their juridiction, but the query was related to "banks role of incometax ( deduction and payment above the exemption limit) on the deposits in various schemes, and they have replied correct that they are not eligible to deal with SB/RD, irts exempted from incometax on banking operations.

how they can ascertain the taxability? say you have only savings bank interest of 5 Lacs, and no other income at all, still they can not deduct, but you will get 1.6 ( 1.8L for this year) exemption automatic for your threshold limit. balance only is available for taxation as per your criteria,

asking the right question at wrong place and then pointing fingers on them is not a good practice. 

Thanks to alll of u. I also know that it is taxable but when they are saying to customers that it is not taxable ,may be to increase no. of a/cs ? Here is my objection because a common man may not show interest in his taxable income & this lead to trouble in future. They never explain in this way.in their three replies also I also know that TDS is applicable on FDs.

Hello - While filing my ITR online, I missed mentioning my intrest incoime from savings account (above 10K). Would it be advisible for me to file the ITR again (before July 31st)  ? Would it attaract any special attention of AO, seeing why return has been filled twice for same AY within 10 days ?

Regards

AB

You have to file Revise Return.. before Ist Aug..

Interest from saving bank account is taxable under the head "Income from other sources"

Form 15G/15H are for exemption from TDS deduction.

They can't exempt your income from Income tax.