The interest received on our savings account is considered as our income and is therefore, taxable. However, we get some tax deduction on the same. Section 80TTA of the Income Tax Act offers tax deduction on interest income earned from savings bank deposit.
Who is eligible?
This tax deduction is available to all individual taxpayers and HUF.
Interest earned up to Rs. 10,000 from a savings account is deductible from the gross income. Any interest earned over and above Rs. 10,000 is considered “Income from Other Sources” and is considered taxable.Read more