Education cess on Bank Interest

Hi,

Do I need to pay education cess on bank interest which includes savings + FD interest (more than 10000)

Is so then how it should be calculated. Will it be automatically taken care by ITR2 form

Please advice.

asked Jul 23 '13 at 12:26 by Gurukul 1872515


You would need to pay education cess (2+1 %) on whole income tax computed in income,

Banks only deduct 10% TDS on interest, so rest 0.3% you would need to pay. ITR form would automatically compute the cess part once you provide income from other sources.

By the way, deduction is available on saving bank interest upto Rs 10,000 u/s 80TTA.

answered Jul 24 '13 at 01:07 by Pankaj Batra 5.2k320

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Thanks for the advice.
(Jul 24 '13 at 12:11) Gurukul

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Asked: Jul 23 '13 at 12:26

Seen: 5,452 times

Last updated: Jul 24 '13 at 12:19