Tax payable on interest from savings account

I have a joint savings bank account with my wife. I want to know if the interest from this account has to be shared and shown in IT return?
-Umesh

Yes, the interest income from savings account has to be shown while filing returns. If you wife is not earning any income then it will be clubbed with your income and you need to show the interest amount as your income. And if your wife is working, either of you can show the interest as income depending on the tax liability. Interest income from a savings bank account is considered under the head "income from other sources".

Section 80TTA provides a tax deduction on interest up to Rs 10,000 earned from all savings bank accounts in a financial year. Over and above this amount, the interest is taxable.

You do not have to attach an interest certificate while filing income tax returns. However, you should retain the original certificate to show it to the assessing officer in case of a tax scrutiny. You should take advantage of the available deduction limit specified specially for such income and file the return accordingly.

This article was originally published on May 25, 2017.