Taxability of interest income varies depending on the nature of income.

savings bank account interest is only taxable in excess of ₹10,000,

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interest earned on Post Office Saving Bank Account is exempt to the extent of ₹3,500 in case of individual account and ₹7,000 in case of joint account.

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The interest income on bonds is included in ‘Income from other sources’, whereas the profit/loss from the sale of bonds is taxable under capital gains.

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interest earned on the employee’s contribution to the PF account will be taxed if it exceeds ₹2.5 lakh in a financial year

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while interest on Public Provident Fund (PPF) is exempt

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any one-time income such as winnings from lotteries, crossword puzzles, horse races, card games or betting of any kind is considered IFOS and taxable.

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