Do not forget to include your interest earnings from bank deposits, National Savings Certificates, bonds and debentures of public sector units as taxable income now. The department could levy an interest or penalty for concealing such incomes.
This was the message from the income tax department on Tuesday for tax payers. In budget 06-07, the finance ministry has erased a tax shelter, exempting interest income earned from these sources upto Rs 12,000. There was also an additional deduction of Rs 3,000 on interest on Government securities.
The exemptions were available under section 80L of the Income Tax Act. In a release the income tax department has said interest income from bank deposits, National Savings Certificates, bonds, debentures of public sector units in the financial year 2005-06, even if the amount if below Rs 12,000.