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Interest income from bank fd

328 views 5 replies

CA Neha Agrawal

830 Points Posted on 08 July 2018

An assessee has earned interest on bank Fixed Deposit around INR 1,00,000 in FY 2017-18. He submitted Form 15G so no TDS was deducted by the bank. This interest income is mentioned in Form 26AS as income and no tax deduction. Now while filing ITR this income is to be shown as "Income from Other Sources". Tax is being charged on this interest income for which Form 15G is already submitted.

How can he claim tax exemption on this interest income while filing ITR? Or is this income fully taxable?

Replies (5)

Venkatesh Dangeti

CA Final

885 Points Posted on 08 July 2018

that income is fully taxable. even 80TTA deduction is not available for interest income from FDs

Ravi SADhiyan

Practice

4510 Points Posted on 09 July 2018

Intt on FDR fully taxable under Income Tax Act.

Anjali P Nair

ACA ACMA

582 Points Posted on 09 July 2018

It is fully taxable. No deduction will be available for it.

By submitting form 15 G he is only move out from TDS liability even though he is not eligible for the same. 15 G can be submitted in following cases only

You are an individual or HUF
You must be a Resident Indian
You should be less than 60 years old
Tax calculated on your Total Income is nil
The total interest income for the year is less than the basic exemption limit of that year, which is Rs 2,50,000 for financial year 2017-18 (AY 2018-19)