All types of interest Incomes are taxable Under Income from Other Sources
like Savings Bank Interest Income,FD and RD Interest Income
However on Savings Bank Interest,Deduction under Section 80TTA is available.
Also on FD,10% TDS is deducted by bank and balance paid to person
Example
Find tax in following cases in case of an Individual
| Particulars | Case 1 | Case 2 | Case 3 | Case 4 | Case 5 |
| INCOME FROM BUSINESS | 400000 | 400000 | 400000 | 400000 | 400000 |
| INTEREST INCOME ON FD | 4000 | 4000 | 40000 | 40000 | 0 |
| INTEREST INCOME ON SAVINGS | 3000 | 13000 | 13000 | 0 | 13000 |
| Particulars | Case 1 | Case 2 | Case 3 | Case 4 | Case 5 |
| PGBP INCOME | 400000 | 400000 | 400000 | 400000 | 400000 |
| INCOME FROM OTHER SOURCES | 7000 | 17000 | 53000 | 40000 | 13000 |
| GROSS TOTAL INCOME | 407000 | 417000 | 453000 | 440000 | 413000 |
| LESS | |||||
| DEDUCTIONS | 3000 | 10000 | 10000 | 0 | 10000 |
| NET TOTAL INCOME | 404000 | 407000 | 443000 | 440000 | 403000 |
| TAX | 15400 | 15700 | 19300 | 19000 | 15300 |
| REBATE | 5000 | 5000 | 5000 | 5000 | 5000 |
| NET TAX | 10400 | 10700 | 14300 | 14000 | 10300 |
| CESS | 312 | 321 | 429 | 420 | 309 |
| TAX+ CESS | 10712 | 11021 | 14729 | 14420 | 10609 |
| Less | |||||
| TDS | 0 | 0 | 4000 | 4000 | 0 |
| Net Tax Payable | 10712 | 11021 | 10729 | 10420 | 10609 |
