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Ministry reminder on interest income
July, 26th 2006

The Finance Ministry on Tuesday asked taxpayers to ensure that interest income from savings instruments is taken into account for tax calculation purposes while filing the return of income for assessment year 2006-07. It has in a release highlighted that interest income on bank deposits, national savings certificates, bonds, debentures of public sector company arising to any person in the financial year 2005-06 would be liable to tax even if the amount is below Rs 12,000. The release also pointed out that Section 80L providing for deduction of Rs 12,000 on income by way of interest on bank deposits, NSC, bonds etc and additional deduction of Rs 3,000 on interest on Government securities has been abolished by Finance Act, 2005 and applicable from assessment year 2006-07.

 
 
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