Interest of saving a/c is taxable?
GAURAV
(Querist) 09 December 2011
This query is : Resolved
Sir, A person has source of income from his salary. He also receives interest from his saving a/c which is also treated as income.
My question is :-The said interest is income irrespective of any amount or interest exceeding Rs.5000/-(or any other amount) should be taken into consideration for calculation of income tax .
Raj Kumar Makkad
(Expert) 09 December 2011
ANY AMOUNT MEANS IRRESPECTIVE OF ITS VALUE. THERE IS NO BOUNDATION OF RS. 5000/-. EVERY INTEREST INCOME SHALL BE INCLUDED UNDER IT ACT.
Sailesh Kumar Shah
(Expert) 09 December 2011
My question is :-The said interest is income irrespective of any amount or interest exceeding Rs. 5000/-(or any other amount) should be taken into consideration for calculation of income tax .
Answer: yes
prabhakar singh
(Expert) 09 December 2011
Income from interest is taxable if its total exceeds Rs.10,000/= in F.Y.but if salaryplus interest does not exceed beyond exemption limit no tax would be imposed.
Even when salary is taxable, interest income below Rs.10,000/=shall not be taxable.
Income from all sources are shown first separately then they are grossed up to count for tax.
GAURAV
(Querist) 09 December 2011
Dear Prabhakar Sir, Then If my Saving a/c interest is Rs. 13000/-in the financial year.Then I have to grossed up to count for tax as(Salary amt+Rs.13000/-).or (Salary amt+Rs.3000/-)
prabhakar singh
(Expert) 09 December 2011
you are right in your understanding.
GAURAV
(Querist) 09 December 2011
Dear Prabhakar Sir,Your answer is not clear,I want to know, Which one of two calculation is correct:-
1.(Salary amt+Rs.13000/-) or
2.(Salary amt+Rs.3000/-)
Sailesh Kumar Shah
(Expert) 09 December 2011
Shri Prabhkar Singh
Respected Sir,
As per my best information, In the computation of income, there is exemption of rs.10000 in interest income.
If there is any such provision, please provide.
Thanks
with Regards,
prabhakar singh
(Expert) 09 December 2011
your saying that"As per my best information, In the computation of income, there is exemption of Rs. 10000 in interest income."is older version of law now interest would be taxable if the gross to gather with interest exceeds the exemption.
But then your salary +13000 thousand is the right answer.
prabhakar singh
(Expert) 09 December 2011
@author : GAURAV
1.(Salary amt+Rs.13000/-) is the correct understanding as per existing situation.
prabhakar singh
(Expert) 09 December 2011
Oh! i see incorrect narration of my own too.
Kindly Ignore my previous post to read that as follows.....
Income from interest is non taxable only if salary plus interest does not exceed beyond exemption limit, no tax would be imposed.
But if interest plus salary exceeds the exemption limit all shall be taxable.
Sailesh Kumar Shah
(Expert) 09 December 2011
@Mr.Prbahkar Singh
oh! i miss to write "NO" in:-
there is exemption
prabhakar singh
(Expert) 09 December 2011
Some time it happens,my narration was also not correctly stating the thing that was in my mind hence i corrected that.
GAURAV
(Querist) 10 December 2011
Thanks to both the experts.
soumitra basu
(Expert) 25 December 2011
Lot of wrong writing among the experts. Please read once more before final submit.
