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Savings bank interest is income or not

pawan (software professional) (33 Points)

08 November 2014

As income from savings bank interest is not taxable so should I consider it income from other than salary and if so then should I mention it in ITR filling and if I need to mention it them how will I pay the tax for it or is there any other way to handle it. For information my savings bank interest is more than 10000 rs for current year.

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15 Replies

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 08 November 2014

Income from saving bank interest comes under income from other sources & it is taxable.

But you can claim deduction u/s 80TTA upto rs 10,000/-

You will have to mention it in your ITR.....

1 Like

HARESH JAMBUCHA (Student CA Final ) (55 Points)
Replied 08 November 2014

If you are recieving Bank Interest more than Rs.10000 than Bank will deduct TDS on it automatically.Rate of TDS deducted depends upon wether you have quoted your PAN No or not.Correct me Experts if I am wrong.

Mihir (Wealth Manager) (5293 Points)
Replied 08 November 2014

Even if interest from saving account is exempt upto Rs. 10,000/- u/s 80TTA, you will have to first mention it under income from sources in your ITR.

Ramanuj (Accountant.) (834 Points)
Replied 08 November 2014

Up to Rs 10000.00 is not taxable & u can claim U/s 80TTA.

pawan (software professional) (33 Points)
Replied 08 November 2014

According to bank person I asked, there is no provision of TDS on savings bank interest and bank also didn't give any proof for the same even after my savings bank interest is more than 10000 for current year. So situation is that I have taxable income if savings bank interest more than 10000 is taxable and I have not been given any proof for the same by bank so how should I handle this in ITR filling form. And for information if I check my PAN transactions details there is no TDS transaction except transactions done on salary.

thiruvayu (FCA) (155 Points)
Replied 09 November 2014

TDS provisions are not applicable in case of interest in savings Bank account. However it is taxable. Offer it under other sources head and claim deduction 80TTA

thiruvayu (FCA) (155 Points)
Replied 09 November 2014

no tds on interest in savings Bank account

pawan (software professional) (33 Points)
Replied 09 November 2014

If savings bank interest is taxable then how should i pay tax for it as tax has not been deducted as tds. Pls elaborate the process to pay the tax for which tds has not been deducted.

DHIRAJ JAIN (00) (30 Points)
Replied 09 November 2014

Interest on savings account in post office is exempt upto Rs.3500 under section 10 (15) and deduction of Rs.10000 under section 80TTA also availed on this income, Therefore we can save taxes on the income upto 13500 of saving account interest through diverting our funds from bank to post office.

Pankhuri Singhal (ARTICLE) (55 Points)
Replied 10 November 2014

Add the income from intt. To your income under the head "income from other sources" and then get deduction of 10,000 u/s 80 TTA. Pay the tax on total income according to your slab rate.

pawan (software professional) (33 Points)
Replied 10 November 2014

My question is that savings account interest I am having is more than 10000 and bank has not deducted any TDS and as per the rule I have to pay taxes for the same. So what is the process of paying that tax on my interest income and get the tax certificate for the same. And if I do not pay taxes for my interest income and mention it in ITR then what will happen in that case.

thiruvayu (FCA) (155 Points)
Replied 10 November 2014

Pay balance income tax using challan no 280 in SBI or through online

thiruvayu (FCA) (155 Points)
Replied 10 November 2014

If you do not pay income tax before filing income tax return, the return will be treated as defective return.

So it is better pay taxes and mention the challan details in your income tax return and then upload.

SOURABH KUMAR VERMA (Software Engineer) (29 Points)
Replied 09 January 2015

Hi,

I have an adjacent question to it. Suppose the interest earned through saving bank account is less than 10000 Rs., should we still mention it in the "income from other sources" category and mention the same in 80TTA to get it deducted (nullified) ?

Regards,

Sourabh