Question

Interest received by an individual on bank deposits is chargeable under the
head
(A) Income from salary
(B) Income from house property
(C) Capital gain
(D) Income from other sources
​

Answer 1

Answer:

(D) Income from other sources.

Explanation:

The interest that you receive from a savings account is taxable under the head “Income from other sources”. Further, Section 80TTA provides for a deduction upto Rs 10,000 on such interest income and therefore, interest earned beyond Rs 10,000 only is taxable.