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Savings bank interest and itr

B (Engin) (205 Points)

21 July 2012

I have interest of amount Rs. 1100 on the amount in my savings bank account . Is it liability of mine to put this value Of Rs. 1100 in the attached ITR 1 form?

In which row should it be put?

Regards

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16 Replies

CMA Vikas Aggarwal (Executive(Costing)) (163 Points)
Replied 21 July 2012

Hello,

Yes its ur liability to pay tax on Interest Income recieved from Bank.

It will be shown under the Head" Income From Other Sources.".

Regards,

Vikas Aggarwal.

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B (Engin) (205 Points)
Replied 21 July 2012

But is this Rs. 1100 taxable?

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 21 July 2012

yes this amount of INR 1100 is taxable.

(Guest)

Savings Bank interest is fully taxable under head 'Other Sources'

B (Engin) (205 Points)
Replied 21 July 2012

Probably it is taxable if the interest is more than Rs. 10000. Is this true that it is taxable if the interest is more than Rs. 10000?

Regards

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Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 21 July 2012

that limit is for TDS deduction. if the interest is even INR 100, then also it is taxable.

1 Like

Christopher Clark (NA) (55 Points)
Replied 21 July 2012

This is wonderful. I am really amazed to know that.

B (Engin) (205 Points)
Replied 22 July 2012

But I am hearing that from this year the Income tax rule has changed and only if the savings bank interest is Rs, 10000 and above then it is taxable.

Can anybody help me please in understanding what I am hearing. Also please let me know whether what I am hearing is correct or not.

Regards

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 22 July 2012

The one about which you are hearing is about filing of income tax return. If

1. any person has income only from Salary and Interest

2. Gross total income does not exceed Rs 5 lakh

3. Interest income does not exceed INR 10000

4. He has declared his interest from Bank to the employer

Then, that individual is not required to file Income tax return and his form 16 is considered his income tax return.

Gunjan Tulsyan (Article) (222 Points)
Replied 22 July 2012

Yes it will be taxable under the Hesd Income from other soures i.e. Row 43 as per the attached form ITR 1..i hope the query is resolved...but in case ur salary is below Rs.500000 and savings bank interest is less than Rs.10000 then no need to file ITR unless u r eligible for a Tax refund...!

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Amarjeet Kaur (self employed) (108 Points)
Replied 22 July 2012

Yes from this FY 2012-13 (AY 2013-14), a rlief in the form of exemption has been given to individual Tax Payers on Savings Bank Interest to the extent of Rs. 10,000.00

I quote the relevant Tax Proposal below:

PART B — TAX PROPOSALS

DIRECT TAXES

 Tax proposals for 2012-13 mark progress in the direction of movement towards DTC

and GST.

 DTC rates proposed to be introduced for personal income tax.

 Exemption limit for the general category of individual taxpayers proposed to be enhanced

from `1,80,000 to `2,00,000 giving tax relief of `2,000.

 Upper limit of 20 per cent tax slab proposed to be raised from `8 lakh to `10 lakh.

 Proposal to allow individual tax payers, a deduction of upto `10,000 for interest from

savings bank accounts.

 Proposal to allow deduction of upto `5,000 for preventive health check up.

 Senior citizens not having income from business proposed to be exempted from payment

of advance tax.

B (Engin) (205 Points)
Replied 22 July 2012

Amar

Does it mean that savings bank interest upto Rs. 10000 is not taxable at all?

Regards

Vidhya (111 Points)
Replied 23 July 2012

Till now any interest income earned from Savings account is taxable.But from AY 2013-14,Savings bank interest income upto Rs.10,000/- is exempt from tax.This is only for individual/HUF

Rakesh Gupta (Vice President Finance) (92 Points)
Replied 23 July 2012

What Vidhya says is correct. As per Section 80TTA Savings Account Interest from a Banking Company/Co-operative society/Post Office is exempt to the extent of Rs.10,000/- from AY 2013-14.