23 June 2015
Sub –Discrepancy in TDS Deducted for F D A/C I do not know whether I am right or wrong .Only thing I can see that I have to pay more as TDS for Fixed Deposit(Cumulative Interest Mode) A/Cs Please note that originally I have made a FD A/C at one SBI branch with a sum of Rs 100000 on 25/05/2009, Maturity Date-25/05/2014 with rate of interest 8.5%.(Cumulative Interest Basis).Maturity value was Rs 152279.After this A/C got matured on 25/05/2014 I renewed it for 2 years 11 months with interest payment on quarterly basis at a ROI of 9.25% with a base value of 146287.As per bank officials TDS of an amount of Rs 152279 minus Rs 146287 =RS 5992 was then deducted),It may be KINDLY NOTED as follows.Interest accrued and TDS deducted for the said A/C for five years before maturity is detailed below
Year Interest Accrued TDS Deducted 2009-10 Rs 7402 Rs 741 2010-11 Rs 9369 Rs 937 2011-12 Rs 10130 Rs 1013 2012-13 Rs 10894 Rs 1090 2013-14 Rs 11774 Rs 1175 Total Interest=Rs 49569Total TDS=Rs 4956(A) Year 2013-14 means up to 31/03/2014.However FD A/C matured on 25/05/14 .Original Invested Amount was Rs 100000.Maturity Amount was Rs 152279.Total interest of Rs 52279 was paid for this A/C.Considering 10.3% Tax TDS(Bank Norms of 10%TDS) should be Rs 52279 X 10.3%=RS 5385(B) of which A TOTAL TDS OF Rs 4956 was periodically deposited to IT Dept by bank(as shown above)in 5 years.IN ADDITION AT THE TIME OF MATURITY A FURTHER SUM OF Rs 5992 WAS DEDUCTED AS TDS,WHICH MEANS A TOTAL TDS OF Rs 5992+Rs 4956= Rs 10948 WAS DEDUCTED.ACTUALLY TDS DEDUCTED AT THE TIME OF MATURITY SHOULD BE (B)-(A)ie Rs 5385-Rs 4955=Rs 430 only IF THE ACCOUNTING PROCEDURE IS DIFFERENT WILL YOU KINDLY ILLUSTRATE IT,Otherwise it is better to invest on interest payable on quarterly basis ,where the maturity amount remains the same as invested amount and there will be no Final TDS,only yearly TDS will be deducted for deposit in IT Dept.THE CONCEPT OF 10.3% TDS AT BANK END IS ALSO NOT CORRECT .IF SOMEONE FALLS IN 20%TAX SLAB HE WILL HAVE TO PAY THE Extra Tax AS SELF ASSESSMENT TAX DURING RETURN FILING On reply from you I will approach bank.With thanks
CAclubindia
