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If salary income and income from interest on bank deposit clubbed, at waht rate tax to be calculated? |
tax rate for salary income and income from other sources are different. On clubbed gross income, how the tax will be calculated? Example:- Salary income 150000/ Intersest income is 48000/. Rate of tax for both the heads are different. The gross income in this case is 198000/ There is no any deduction. How the tax will be calculated? I want to clear that there is no separate tax rate for interest on bank deposit. it will be taxed as same rate as salary will be taxable. but if bank interest on fixed deposit is more than 5000 then bank will deducted TDS at the rate of 10.2%. in your case up to 100000 the income will be exempted and balance 98000 will be taxable at normatl rate. up to 100000 nil Nil up to 150000 10% 10000 up to 250000(48000) 20% 9600 Gross tax payable 19600 Add: education cess 2% 392 Total taxable tax payable 19992 Less:-TDS on Bank interest 4896 Net tax payable 15096 Source(s): Rajat mittal(LLB) There is no separate tax rate for interest on bank deposit. In your case up to 100000 the income will be exempted and balance 98000 will be taxable at normatl rate. up to 100000 nil Nil up to 150000 10% 10000 up to 250000(48000) 20% 9600 Gross tax payable 19600 Add: education cess 2% 392 Total taxable tax payable 19992 DearSir, Salary income is put under INCOME FROM SALARIES head and Bank interst under INCOME FROM OTHER SOURCES. However on calculating total tax the same would be treated as total Income i.e.Rs.198,000/-(Rs.150,000/- + Rs 48,000/- Therefore tax payable for Assessement year(2006-07) assumed would be: 14892/- If bank has deducted TDS on Bank Interest @10.2% then less the amount deducted by the Bank. Thanks For further clarification mail at goindiainsurance@gmail.com |
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