LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Savings a/c & fd interest in tax return (itr-2)

Avik (Student Others) (38 Points)

21 May 2014

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 ?

Reply
Follow
Share

5 Replies

CMA Poornima Madhava (CMA) (13097 Points)
Replied 21 May 2014

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/-

harshita kushwah (articled trainee) (58 Points)
Replied 21 May 2014

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

Piyush Mittal (Article Assistant) (63 Points)
Replied 21 May 2014

Interest under head other sources =7682+ 4837 Deduction u/s 80TTA= 7682

1 Like

CA Dipak (achiever) (238 Points)
Replied 22 May 2014

FD interest and saving bank interest under Income from other source. Saving bank interest exempt u/s 80TTA .

Nalam Ravindranath (78 Points)
Replied 22 May 2014

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.