ITR
Reporting savings and FD interest in ITR-1
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Facts
All interest is taxable under income from other sources. Under the old regime, savings interest up to ₹10,000 is deductible under Sec 80TTA for non-seniors. TDS by the bank is claimed as a credit.
Provisions and law
- Sec 80TTA, Income-tax Act 1961 (now Sec 153)Deduction up to ₹10,000 on savings account interest for non-senior individuals under the old regime.
- Sec 194A, Income-tax Act 1961 (now Sec 393)Banks deduct TDS on interest above the threshold.
Analysis
If savings interest is ₹8,000 and FD interest is ₹60,000 with TDS of ₹6,000, report both in full. Under the old regime claim ₹8,000 under 80TTA. Claim the ₹6,000 TDS so it reduces your tax. Report interest on accrual basis consistently each year, especially for cumulative FDs.
Conclusion
- Get interest certificates from each bank.
- Report savings and FD interest separately.
- Claim 80TTA only under the old regime.
- Claim TDS shown in Form 26AS.
- Check the totals match AIS.
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Income tax return for salaried and pensioners, ITR-1 (Sahaj)
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