Manage Interest Income
In India, saving is often valued over spending—and interest income plays a key role in helping individuals grow their wealth steadily. It is the income earned from various financial instruments such as fixed deposits, savings accounts, bonds, and more.
This guide will help you understand the different types of interest income and how to report them accurately when filing your income tax return.
Types of Interest Income
| Type of Interest | Source |
|---|---|
| Savings Account | Interest earned on the balance in your savings bank account |
| Fixed Deposit | Interest from fixed or recurring deposits in banks, post offices, or co-operative societies |
| Provident Fund | Interest earned on balances in your Employees' Provident Fund (EPF) or Recognized Provident Fund (RPF) |
| Income Tax Refund | Interest received on delayed income tax refunds |
| Public Provident Fund | Interest from your Public Provident Fund (PPF) account |
| Any Other | Interest from bonds, personal loans given, or other investment instruments |
Note: Interest earned from Public Provident Fund (PPF) is exempt from tax under Section 10(11) of the Income Tax Act.
Steps to add interest income
There are two ways to add your interest income
1. Autofill from Income Tax Department
- Navigate to File > Incomes > Other Incomes. Click Connect to import data from ITD
- Connect to ITD via Aadhaar OTP or credentials
Your interest income will be auto-filled. You can review it and proceed further.
2. Add Manually
- Navigate to File > Incomes > Other Incomes. Click on Interest Income
- Enter the interest earned during the year
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