Is interest from bank deposits taxable?

Someone is saying that the interest on fixed depost is taxable and some one is saying that interest upto Rs 10,000/- is exempted but nobody is clear that either interest received from saving bank account and interest received on fixed deposit has to be clubbed and the interest upto Rs 10,000/- will be exempted under section 80TTA.  It may be claried as follows:-

(a)     Interest on fixed deposit   either exempted u/s 80TTA or not.

(b)    It is clear interest received on saving account is exempted upto Rs 10,000/-

Can any one guide me relief u/s 89. Whther the relief is combined of Annexure I (Salary in arrear) & II (Gratuity) or any one is taken while claiming.?   Please help me out.

Hey Dinesh, as per sec 80TTA, Interest upto Rs. 10000/- is only exempted on SAVING ACCOUNT INTEREST.

Hope this will help  you.