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Taxability of interest on saving bank

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prash

audit assistant

30 Points Posted on 25 July 2014

For example :An individual 'X' who is in 20% slab rate of income tax. HAs IFOS from Interest on saving bank A/c of Rs. 30,000/-. So the right way to compute his tax 1) 30,000 X 20/100 or 2) 30,000 X 20/120.

Any option you choose pls explain why?

thanks in advance guys

Replies (4)

CA Saloni

Manager-Accounts & GST Consultant

3197 Points Posted on 25 July 2014

You should calculate tax according to slab rates. Further, U/s 80TTA, deduction upto Rs 10000/- of interest from saving account can be claimed.

CA Saloni

Manager-Accounts & GST Consultant

3197 Points Posted on 25 July 2014

Dear Prash,

You should calculate tax according to slab rates.

Further, U/s 80TTA, deduction upto Rs 10000/- of interest from saving account can be claimed.

Mihir

Wealth Manager

5358 Points Posted on 25 July 2014

Rs. 30,000/- interest added in your total income and taxed according to your tax slab , and Rs. 10,000/- is deducted u/s 80TTA.

Tribhuvan Aditya Singh

Student as well as Self-employed

3853 Points Posted on 25 July 2014

@ prash... correct way to calculate is (30000-10000)*20/100 ... assuming whole of intt is falling under 20% bracket after including other income also.