HERE'S HOW IT WORKS

Fill Form

1. Request a Quote

Simply fill the form to get started.

Expert Call

2. Payment Processing

We’ll connect & complete legalities.

Get Documents

3. Document Submission

Receive your company docs securely.

Get Documents

4. Receive your Work

Receive your company docs securely.

Interest Income

 

Interest Income Tax Filing in India

Declare Your Interest Income Accurately. Avoid Penalties. Maximize Deductions.

What is Interest Income?

Interest income is the money you earn by lending your money to banks, financial institutions, or individuals. This includes interest from:

  • Savings bank accounts

  • Fixed deposits (FDs) & recurring deposits (RDs)

  • Bonds, debentures & corporate deposits

  • Loan interest from friends, family, or others

All interest income is taxable in India, and must be reported while filing your Income Tax Return (ITR).

Sources of Taxable Interest Income

Source Tax Treatment
Savings Bank AccountTaxable under "Other Income"; 10,000 exemption u/s 80TTA
Fixed Deposits (FD)Fully taxable at slab rate; TDS @10% if over limit
Recurring Deposits (RD)Fully taxable; no exemptions
Corporate Deposits / BondsFully taxable unless notified otherwise
Post Office InterestSome schemes exempt (e.g. PPF), others fully taxable
Interest from Loan GivenTaxable under “Income from Other Sources”

Do You Need to File ITR?

You must file ITR if:

  • Your total income (including interest) exceeds the exemption limit (2.5L/3L/5L)

  • You want to claim a refund of TDS deducted by banks

  • You earn interest from multiple banks, loans, or investments

  • You want to avoid future tax notices and mismatch penalties

TDS on Interest Income

  • TDS @10% is deducted by banks if FD/RD interest exceeds 40,000 (50,000 for senior citizens)

  • Submit Form 15G / 15H if your income is below the taxable limit

  • TDS doesn’t mean tax is fully paid — you still need to file your ITR

Deductions You Can Claim

SectionBenefit
80TTADeduction up to 10,000 on savings interest (below age 60)
80TTBDeduction up to 50,000 for senior citizens (60+) on all interest
OthersIncome from PPF/EPF/Post Office (if applicable) is exempt

Documents Required

  • Bank Passbook or Interest Certificates

  • FD & RD statements from all banks

  • Form 26AS & AIS (Annual Information Statement)

  • TDS Certificates (Form 16A)

  • Loan agreements (if earning interest privately)

How SSA TAX Helps You

At SSA TAX, we make sure your interest income is:
Correctly calculated
Accurately reported
Matched with AIS & Form 26AS
Optimized with eligible deductions
Filed with the right ITR form (ITR-1, ITR-2, etc.)

‍ Our Services Include:

  • Interest income calculation across banks & platforms

  • Form 26AS and AIS reconciliation

  • Form 15G/H submission assistance

  • ITR filing with interest income

  • Year-round support & tax planning

Important Dates

Compliance                                             Due Date
File ITR (Non-audit case)                                               31st July 2024
File ITR (with audit)                                               31st Oct 2024
Form 15G / 15H (each FY)                                           Before interest is paid

Get Expert Help Today!

Let SSA TAX handle your interest income declaration and ITR filing — the right way.

No hidden charges

CA-reviewed filings

Dedicated support on WhatsApp

Call / WhatsApp: +91-9773346539/38/34
Email: info@ssatax.in
Website: www.ssatax.in

Start Your Filing Today – It’s Easy with SSA TAX!

FAQs – Interest Income Tax Filing

Q1. Is savings account interest taxable?
Yes, but deduction up to 10,000 is available under Section 80TTA.

Q2. Is FD interest exempt for senior citizens?
No. But they can claim up to 50,000 exemption under Section 80TTB.

Q3. I didn’t get TDS, should I still report interest income?
Absolutely. All interest income must be reported, whether TDS is deducted or not.

Q4. What if I miss reporting FD interest?
It may lead to notices, penalty, or re-opening of return under scrutiny.