How is bank interest calculated for income tax in India. I dont have any income apart from interests.?

I do not have any other income in India. Do I get the normal exemption for Income tax or is it calculated differently.
Answer:

Banks are required to deduct TDS on interest income if it is expected to increase Rs. 10,000 in a year. The TDS rate is 10.3% (includes education tax). Read http://mytaxes.in/index.php?topic=8.0 For FY 2008-09, the income tax exemption for male is Rs. 1,50,000. So if you interest income is less than this, and you are resident, then you will get refund when you file your tax return.

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Other answers

Earlier there used to be an exemption under section 80L for bank interest upto a certain amount.Now even that limit is abolished.Now one has to pay tax on the entire interest income be it from Bank-Saving a/c,Bank FDR,NSC,KVP,NSC ,post office etc.Even if u do not have any other income,in case ur interest exceeds basic exemtion limit of Rs.110000,u are liable to pay tax at the rate applicable to ur income

rktrinagar

10% of the total interest income plus surcharge and education cess .

g.c. s

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