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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Taxation of Other Products

Interest income earned by an individual on a bank savings account is taxed under which head of income, and what deduction is available to a non-senior citizen under section 80TTA in the old regime?

Savings account interest is taxed under income from other sources, and a non-senior individual can claim a deduction up to Rs 10,000 under section 80TTA in the old regime. Senior citizens instead claim under 80TTB with a higher limit.

  1. AIncome from other sources; up to Rs 10,000Correct
  2. BCapital gains; up to Rs 10,000
  3. CIncome from other sources; up to Rs 50,000
  4. DBusiness income; no deduction

Explanation

Savings account interest is taxed as income from other sources. Section 80TTA allows a deduction up to Rs 10,000 in the old regime for non-senior individuals, while senior citizens use 80TTB with a higher limit. It is not capital gains or business income.

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