Interest from Savings Bank Account is Taxable !!!

I find that there is a general assumption that Interest accumulated in your Savings bank account i.e the Salary Account is NOT taxable up to the limit of 12K.

AFAIK, as per the revised IT Guidelines, there is no such limit that qualifies for exemption.

Please look for "Common mistakes people make while filing tax returns" HERE

I see that there was a 12,000 limit under a section called 80L.
This is now no longer applicable, so you pay full tax on all interest received.

If you have received interest of more than Rs. 5,000 banks will deduct TDS,
and give you a Form 16A. In that form the "Interest earned" will be mentioned - total up all the interests received if you have more than one source, and put the total in this field.

Refer to this Link