Tax on saving account interest

I belive if Interest is more than 10,000 in a year, it is taxable, But it amount to be a part in total income from other sources , to may reach under taxable range.

 

Thanks

DEAR VIKAS SIR

INTEREST ON SAVING A/C BALANCE IS TAXABLE UNDER THE HEAD OTHER SOURCES

BECAUSE TAX IS NOT DEDUCTIBLE ON THIS INTEREST AS PER SEC-194A BY THE PAYING BANK

IT IS THE FIXED DEPOSIT INTEREST ON WHICH TAX  IS DEDUCTED BY THE PAYING BANK IF SUCH INTEREST EXCEEDS 10000

SO U HAVE TO INCLUDE SUCH INEREST ON SAVING A/C BALANCE IN THE INCOME FROM  OTHER SOURCES THEN CALCULATE TAX ON YOUR  TAXABLE INCOME AS PER THE PROVISIONS OF INCOME TAX ACT

Yes in simple language Bank interest is to be added in your taxable income . However Bank will deduct TDS only on FDs if interest is more than Rs 10000.

The interest earned on SB & RD are exempted only from deduction of tax at source (TDS)  by bankers.

However, it is taxable as income by the assessee.

Thanks Jain and Deepak for your prompt reply .

As Mr. Prabhaker given comment that if saving interest more  than 10,000 in a year, it is taxable, But it amount to be a part in total income from other sources.

 

Since my saving bank interest is less than 10,000 ( Rs .5020),  Should i need to pay tax ?

Any  Comment is appreciated

thanks

vikas

after deletion of sec 80L, all interest income is taxable from Rs 1/- under "income from other sources" however interest from Post Office Savings Bank is exempted under 10(15)i ( now exempted upto 3500 only thereafter taxable).

its obvious.. you have to pay tax on interest if your iaggregate income is more than 160000

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details