Some year back, Interest from Saving Bank Account or Interest from Post office R. D. Account were not taxable under Income Tax Act. But now-a-days all interest whether relates to Saving Account or not are taxable for income tax.
The above mentioned interest neither falls in u/s 80L or not Exempt from Income Tax. Therefore, the persons who have made any deposit in Post Office in the shape of Recurring Deposit (R.D.) , should keep in mind to take interest of R.D. in his computation under "Income from Other Sources Head" on yearly basis to avoid any penalty. No doubt it is difficult to calculate for anyone due to it's feature quarterly compound interest. We have tried to make it easy with the help of following calculator.
Excel Based Calculator for R.D. Interest (Click Here)
On Line Excel Based Income Tax Calculator (Click Here)