07 June 2014
I have a MOD account with SBI from which I got Rs 15000 as interest. Now,we all know that MOD account being a 'term deposit', all of the interest earned qualifies for tax. SBI has done that and they have deducted Rs.1500(10% of the interest earned by me) as TDS and it is duly reflected in my form 26AS. All well and good till now, but when I enter this interest amount(Rs.15000)while filling my IT Return-1,the software calculates the interest at 20%, so it is adding the interest to my total income and calculating income tax on this final sum. There is no provision in ITR-1 to fill this income from interest from term deposits. My questions are: 1)Is my TDS on interest correctly deducted by the bank 2)Where should I reflect this in my ITR-1/Will I have to fill ITR-2 instead?
07 June 2014
What is your source and amount of non interest income? If your other income exceeds 5 lakhs after all adjustments the interest shall be charged to tax @ 20%. If you have business income then file itr4 otherwise itr2. Itr1 is primarily for salary.
07 June 2014
you can file itR-1 and interest income show under income from other sources. tds deducted by the bank is ok due to TDS rate is 10% under income tax if you submit the PAN with Bank.
you taxable income is above Rs.5,00,000/- then your income will taxale @ 20% up to Rs. 10 lcas.
07 June 2014
Dear experts, My taxable salary from govt service is around Rs.6,00,000. So if I add the 15,000 from interest to my salary from income,it goes in tax- slab of 20%. But the bank has cut a TDS on this 15,000 at 10% only(RS.1500). If I add this amount to my total salary then I have underpaid the tax and I need to pay the remaining tax(Rs.1500+Education cess)and get a challan. Am I right? is this what I need to do? Also, do I need to fill ITR-1 and show this interest income under the head "income from other sources" or shall I fill ITR-2. I am thoroughly confused by now. Kindly help.
07 June 2014
Thank you Nikhil sir. My Total "exempt income" is Rs.14000 from Transport allowance + Kit Maintenance allowance.But its a part of my salary only(I am a government Doctor). I have no other income other than 1)my salary 2)Bank Interest Do I need to show this "exempt Income" at all since this is an allowance which is part of my salary only. Because if I don't need to show this, I can fill ITR-1 which is very simple compared to ITR-2.
09 June 2014
ITR for salary, one Houseproperty,bank iterest but not capital gain ITR2 for salaary, more than two Houseproperty, iterest income and Caital Gain,but ot Business income
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