Limit of Exemption for Interest earned on Fixed Deposit under old regime

Income Tax Income from Other Sources
1

Request if following can be clarified regarding current limit for taxation on Interest earned on Fixed Deposit under old regime.

  1. I want to know upto what amount of interest earned from FD is exempt from taxation if form 15G is submitted to bank in a financial year as per old tax regime.
  2. If I am saving 1,50,000 in PPF then does interest earned from FD gets reduced from Total interest earned in financial year.
    For example - Interest earned is Rs 4,00,000 from FD and savings is Rs 1,50,000 in PPF under section 80 C, then would my interest income from FD that is Rs 4,00,000 get reduced from 1,50,000 investment done in PPF so that net income under head of income from other sources gets reduced to 2,50,000.
  3. I am a student with no source of income except for gift money received from my parents which I invest in FD.
    Thanks
2

Hey @sandeepsood100,

Under the old tax regime, you get a tax rebate on an income of up to ₹5L. Hence, you’ll have no tax liability on income below ₹5L.

Moreover yes, you can claim the 80C deduction with your PPF investment against your interest income.

Hope this clarifies!

3

Thank you ma’am for your reply :pray: