NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Income from Other Sources
Under the Income-tax Act, 1961 as applied to individuals, which of the following is a head of income under which interest on a bank savings account is ordinarily taxed?
Interest earned on a bank savings account is ordinarily taxed under the head Income from Other Sources, because it is not business income, house property income or a capital gain. It is added to total income and taxed at the individual's applicable slab rate.
- AIncome from Other SourcesCorrect
- BProfits and Gains of Business or Profession
- CIncome from House Property
- DCapital Gains
Explanation
Interest on savings bank accounts, fixed deposits and similar deposits is taxed under Income from Other Sources unless the deposit is held as business stock-in-trade. The other heads do not apply to ordinary investor deposit interest.
Did you get it right without looking?
One question tells you little. A timed set on Income from Other Sources shows your real accuracy, how long you take and where you lose marks.
More Income from Other Sources questions
- Under the Income-tax Act, 1961, winnings from lotteries, crossword puzzles and card games are taxed under Income from Other Sources at which…
- Under the Income-tax Act as applicable to individuals, which of the following receipts is generally taxed under the head 'Income from Other …
- Ms. Anita Desai, a resident individual, received dividends of Rs 24,000 from an Indian company and incurred Rs 3,000 as interest on a loan t…
- Meera, a senior citizen, earns interest of Rs 62,000 on bank fixed deposits during the year. Under the old regime, she also has Rs 9,000 of …
- Ms. Kavita Rao, a resident individual, received Rs 1,20,000 as dividend from an Indian company during the year. She is in the 30% slab (igno…
- Caselet: Mrs. Kavita Rao, aged 62, inherited a plot from her late father and later received from her son, as a gift, shares of an unlisted c…