Sb ac interest - and it return

1. Income from Other Sources.

2. Under section 80TTA, interest up to Rs. 10,000 earned from all savings bank accounts is exempt from tax.

income from other sources, get exemption under section 80TTA till 10000/-

Dear  Deepak Gupta

Thanks for your excellent inputs

1. Exemption till Rs10K, ok,  I understood from your answer

2. but I am not able to understand that, whether my interest income (Rs4K which is less than Rs10K) should be SHOWN or not?

3.if so, in ITR , WHERE is  the palce >>>> income from SB ac interest?

4. I have EURO dollar -one time unusual income (recd from foregin trip)  also.  If I follow your above info, then my (i) Interest SB ac income + (ii) my Euro income, BOTH I should ADD and show UNDER income from other SOURCE?

Adv Thanks for you help

regards

Balaji Subbu

2. Interest should be shown under ‘Income from Other Sources’ because it is a taxable income eligible for deduction u/s 80TTA.

Under deduction concept, the amount is first included in the gross income and then deduction is claimed, to the permissible limit, to arrive at the total income.

As per your understanding, its exempt income concept, where the income is not considered as a part of total income and the whole amount is exempt for the taxpayer. However, we need to report it in the ITR under exempt income for reporting purpose only.

So, first include 4K interest income under IOS and then claim deduction for the same. If interest is > Rs. 10,000 in a F.Y., the difference will attract tax. Since, your interest income from the savings accounts is < Rs. 10,000, you don’t have to pay any tax on it. 

3. Where to report in the ITR?

ITR1: B3 - Income from Other Sources (net amount of OS)

ITR2: Schedule OS – 1b (Interest, Gross)

4. Wait for someone else to answer this query.

1st u need to take interest income as a part of your total income and thereafter u will ged deduction min(10000,Interest on Saving Ac)

Dear Deepak Gupta

Thanks for your GREAT and excellent explantions....

1. Ok as you instructed, I will REPORT interest income under IOS (what is IOS?)
2. Then I will claim 80TTA EXEMPTION for the above interest from SB ac.

Question A: Please let me knowEXACTLY (with point numbers in IT Return) where I must state above 2 points

3. I had EURO dollar - Employer gave me for daily expenses (recd from foreign trip), but I did NOT spent. It is one time unusual income and exchanged through my bank in India around Rs 10,000.  Per-diem allowances are non-taxable under section 10(14) of income tax.

Question B. Dear Deepak, will you please throw some light about point 3 is right or not?

Adv Thanks Deepak

regards

Balaji Subbu

1) If interest received from SB a/c 4,000/-

Income from other source 4,000/-

80TTA                             4,000/-

2) If interst received from SB a/c 12,000/-

 Income from other source   12,000/-

 80TTA                               10,000/-

3) If interst received from SB a/c 10,000/-

 Income from other source   10,000/-

 80TTA                               10,000/-