According to Interest Certificate from Bank for FY13-14:
Savings A/C Interest ( @ 4% p.a.): ₹7682
FD Interest ( @ 9% p.a.): ₹4837
Total: ₹12519
How do I show this on ITR-2 ? Do I have to pay tax on normal Savings A/C interest also ?
How much do I show under Income from Other Sources ?
How much do I show under Exempt Income ?
SB & FD A/c interest to be shown as interest income from other sources. SB A/c interest can be claimed as deduction u/s 80TTA to the extent of Rs.10000/-
saving a/c interest upto 10000 is exempt under section 80TTA
interest on FD in scheduled bank (>5 yrs.) gets deduction under section 80C upto 100000
income from other source=Rs.12519
exempt = Rs. 7682
FD interest and saving bank interest under Income from other source. Saving bank interest exempt u/s 80TTA .
Deduction under section 80TTA is limited to interest income earned on Savings Bank accounts only.Hence you can claim deduction only for Rs. 7682. While filling up the income tax return the entire gross amount of interest of Rs. 12,519 is to be shown under he head " Income from other sources. You have to claim deductions by filling up he data under section 80TTA in " Chapter VI A deductions"
Obviously by doing so, you are claiming dedcution (upto a maximum of Rs. 10,000) under section 80TTA and offering the balance interest on FDRs as taxable.
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