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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Income from Other Sources

Under the Income-tax Act, interest received on a savings bank account held with a bank by a resident individual is chargeable under which head of income, and which deduction is available to an individual (below 60 years) on such interest under the old regime?

Savings account interest is taxable under Income from Other Sources. An individual below 60 years can claim a deduction under section 80TTA of up to Rs 10,000 on it under the old regime. It is not business income, capital gains or house property income.

  1. ABusiness income; no deduction is available
  2. BIncome from other sources; deduction under section 80TTA up to Rs 10,000Correct
  3. CCapital gains; deduction under section 54EC
  4. DIncome from house property; standard deduction of 30%

Explanation

Savings bank interest is taxed as Income from Other Sources. Under the old regime, an individual or HUF below 60 years can claim a deduction under section 80TTA up to Rs 10,000. Business income and house property heads do not apply to such interest.

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