Taxability of interest income varies depending on the nature of income.
savings bank account interest is only taxable in excess of ₹10,000,
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.
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.
interest earned on the employee’s contribution to the PF account will be taxed if it exceeds ₹2.5 lakh in
a financial year
while interest on Public Provident
Fund (PPF) is exempt
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.