Income tax on bank interest
Naresh Mohan Gupta
(Querist) 29 June 2013
This query is : Resolved
I have a saving plus account with SBI. In this account balance in excess of Rs. 5000 and in multiple of Rs. 10000.00 is automatically converted into Fixed deposit.Thus I have gained an interest of Rs. 22496.00 in F.Y.2012-13 and bank has deducted a TDS of Rs. 2261.00 over this amount. Someone has told me that upto Rs. 10000/- interest earned in saving account is exempted from income tax. Is it true? Will it be applicable in my case, If yes how much tax more I have to pay?I falls in 30% slab of income tax.
Regards
Rajendra K Goyal
(Expert) 29 June 2013
Saving plus account in SBI is a term deposit account separate from saving account(account is also kept separate), though the conversion in term deposit is automatic. TDS has to be deducted on Term deposit interest. You have to pay balance of tax on this interest(Tax payable less TDS).
Raj Kumar Makkad
(Expert) 30 June 2013
Rajender has perfectly attended the query.
adv. rajeev ( rajoo )
(Expert) 29 June 2013
