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Advance tax for fd interest

Vivek (Engineer) (25 Points)

27 January 2015

Hello all,

I have some income from my FD (Fixed Deposits) as their interest i am earning. I have not asked my employer to deduct taxes on this amount.

I wanted to know what is process to deposit the taxes for this amount if i want to do this on my own. Previous year i calculated this amount only at the time of ITR filing and paid SAT (self assessment tax) but i have to pay some interest on that amount under section 234B and 234C (my CA did this).

I want to avoid paying any interest this time and pay taxes as anyway i will do that.

Can someone guide me on this.

Regards,

Vivek

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5 Replies

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 27 January 2015

declare this income to the employer who will do the tax computation including this income so that you need not pay self assessment tax and the employer deducts tax for salary income +other income

Vivek (Engineer) (25 Points)
Replied 27 January 2015

Hello !

Thanks for the responses.

I wanted to know what is the procedure to pay if i am not giving details to my employer. Apparantly that is a bit difficult at this point of time as i have already submitted investments proofs to my employer.

What is the process to pay this using Advance tax ?

-vivek

CA Adit Sharda (Partner G. C. Sharda & Co.) (287 Points)
Replied 27 January 2015

You can compute your income for the year and the amount of TDS that your employer is deducting can be reduced from the the tax liability. If the net amount is more than 10,000/-, you need to pay advance tax.

NARAYANA MISHRA (ARTICLE) (116 Points)
Replied 28 January 2015

Now you have two option- 1st- you go ur bank in which you have FD.Give money to bank & bank will deposit the money as TDS. otherwise bank doesn't claim intt exp bcoz bank didn't deduct TDS. 2ND-GO TO tin Nsdl web site & pay the tax

Kumara Bhat (CA Practice ) (28 Points)
Replied 28 January 2015

Int may b from employer say on co deposit. However the nett tax liability(if exceeds 10000) is to be paid in 3 instalments of 30%,30% and 40% on or before 15th Sep,15thDec and 15th March respectively. Balance if any u pay SAT