Private Savings Tax Calculator
India savings interest tax calculator. Enter income and tax rate to compute 80TTA/80TTB deduction, taxable interest, tax payable, and net interest with charts.
About This Calculator
The Private Savings Tax Calculator helps you estimate the tax liability on your savings interest income in India. Interest earned from savings accounts, fixed deposits, recurring deposits, and other deposit schemes is taxable under the head 'Income from Other Sources' as per the Income Tax Act, 1961.
The calculator applies the applicable deduction under Section 80TTA (up to ₹10,000 for individuals and HUFs under 60 years) or Section 80TTB (up to ₹50,000 for senior citizens aged 60 years or above). The remaining taxable interest is then taxed at your income tax slab rate to give an estimated tax amount and net interest after tax.
Regional Notes
India (IN): Savings interest is taxed at slab rate. Deductions of ₹10,000 (80TTA) or ₹50,000 (80TTB for senior citizens) apply. TDS at 10% applies on interest above these thresholds unless Form 15G/15H is submitted.
US: Savings interest is reported on Form 1099-INT and taxed as ordinary income at your marginal federal rate plus applicable state tax. No specific deduction for savings interest exists at the federal level.
UK: The Personal Savings Allowance allows £1,000 (basic rate) or £500 (higher rate) of interest tax-free annually. Additional rate taxpayers have no allowance. Interest above is taxed at marginal rate.
Frequently Asked Questions
What is the deduction limit for savings interest under Section 80TTA?
Under Section 80TTA of the Income Tax Act, individuals and HUFs (other than senior citizens) can claim a deduction of up to ₹10,000 on interest earned from savings accounts held with banks, post offices, or cooperative societies.
What is the deduction limit for senior citizens under Section 80TTB?
Senior citizens (aged 60 years or above) can claim a deduction of up to ₹50,000 under Section 80TTB on interest income from savings accounts, fixed deposits, recurring deposits, and other deposits with banks and post offices.
Is interest from fixed deposits taxable?
Yes, interest earned from fixed deposits (FDs) is fully taxable under the head 'Income from Other Sources'. It is added to your total income and taxed as per your applicable income tax slab rate. Senior citizens can claim deduction under Section 80TTB.
Do I need to report savings interest if it is below the deduction limit?
Yes, you must report all interest income in your income tax return even if it is below the deduction limit. The deduction under Section 80TTA or 80TTB is claimed separately to reduce taxable interest income.
At what slab rate is savings interest taxed?
Savings interest is added to your total annual income and taxed at your applicable income tax slab rate. For example, if you fall in the 30% slab, your taxable interest above the deduction limit will be taxed at 30% plus applicable cess and surcharge.
Is there any TDS on savings account interest?
Banks deduct TDS at 10% (or 20% if PAN is not furnished) on savings account interest exceeding ₹10,000 in a financial year under Section 194A. For senior citizens, the threshold is ₹50,000 under Section 194A. No TDS is deducted if you submit Form 15G or 15H.
How does the UK tax savings interest?
In the UK, most people have a Personal Savings Allowance of £1,000 (basic rate) or £500 (higher rate), meaning no tax on savings interest up to that amount. Additional rate taxpayers have no allowance. Interest above the allowance is taxed at your marginal income tax rate.
How is savings interest taxed in the US?
In the US, savings account interest is reported as ordinary income on Form 1099-INT and taxed at your federal income tax rate. It is also subject to state income tax in most states. There is no specific deduction for savings interest at the federal level.