1. Income tax returns filing: How to get savings account interest rate deduction of up to Rs 10,000

Income tax returns filing: How to get savings account interest rate deduction of up to Rs 10,000

A deduction under Section 80 TTA up to Rs 10,000 can be claimed against savings account interest, which means that any interest income on savings bank account over and above Rs 10,000 will become taxable.

By: | Published: August 21, 2017 5:41 AM
Income tax, returns filing, Income tax returns filing, Income tax returns, document proof, taxable amount, tax deduction a deduction under Section 80 TTA up to Rs 10,000 can be claimed against savings account interest, which means that any interest income on savings bank account over and above Rs 10,000 will become taxable.

Is the interest earned on savings account taxable? Is there any documented proof of it?

– Manoj Sharma

Yes, the interest earned on saving accounts is taxable under the head ‘income from other sources’. However, a deduction under Section 80 TTA up to Rs 10,000 can be claimed against savings account interest, which means that any interest income on savings bank account over and above Rs 10,000 will become taxable. Further, your bank statements reflect the interest earned on savings bank account on quarterly or half year basis, which can be used as a documentary proof. Alternatively, you can also obtain interest certificates from the respective banks which reflect the interest earned by you on your savings bank account on a yearly basis.

Will my employer also submit my Form 16 and my investment proofs to the income tax department online for verification of my IT return?

—Rohit Kumar

No, the employer does not submit Form 16 and the investment proofs per se to the income tax department but only the details, which are filed when the employer furnishes its TDS returns. Therein, the employer is required to furnish the salaries paid, tax deducted thereon and the calculation on basis of which TDS is deducted by them. In fact, the Part-A of Form 16 is extracted from the income tax database with the help of the details filed as part of the TDS returns.

Whenever I fill the data on the online tax portal, the tax amount comes automatically at the end which is the same number in my Form 16. So, are these data pre-filled in the tax department site by my employer?

— Saurabh Asthana

The details are not pre-filled. In your Form16, the income tax is calculated on the net salary, i.e., gross salary less deductions earned by you as per the slab rates provided for tax computation. When the same figure is entered manually by you on the online tax portal or the online utility, the income tax on the data provided by you is calculated according to the same slab rates. Thus, they both reflect the same figure.

The author is a partner, Ashok Maheshwary & Associates. Send your queries to fepersonalfinance@expressindia.com

  1. No Comments.

Go to Top