Interest tax

Tax  only on income connotesa periodical money return 'coming in with some sort of regularity, or expected regularity from definite sources. The source is not necessarily one which is expected to be continuously productive, but it must be one whose object is the production of a definite return, excluding anything in the nature of a mere windfall. Thus, income has been likened pictorially to the fruit of a tree, or the crop of a field. It is essentially the produce of something whcih is often loosely spoken of 'capital'. But capital, though possibly the source in the case of income from securities, is in most cases hardly more than an element in the process of production.

Dear Haridatta,

Interest Tax Act has long back been repealed. Presently there is no law which requires payment of interst tax on interest income.