2 Replies to “Income Tax Exemptions – Interest received from Savings Bank Account?”

  1. Yes you are right. But the wordings interest received from savings bank account is a little bit confusing. Saving bank account and Fixed deposit account are two different type of accounts which earn interest. Whether the income tax rule includes the interest earned on Fixed deposit is also included or not is not clear. Simply interest earned on bank deposits wouldnt have any ambiguity.
    Some experts are to clarify on this.

  2. Bank Interest will be included in your Total Income. However you can claim deduction under section 80TTA upto maximum of Rs 10,000. Please note that this deduction is available for interest from Saving Bank A/c and not from FD A/c.

    Suppose your Salary Income is Rs 2,00,000 and your interest income is Rs. 12,000.

    Salary = Rs. 2,00,000
    Bank Interest = Rs. 12,000
    Gross Income = Rs, 2,12,000
    Less Section 80TTA = Rs. 10,000 (Max allowable)
    Total Income = Rs. 2,02,000 (this is your taxable income! tax will be calculated on this amount)

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