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Deduction made u/s 194a

Gaurav (IT Professional) (64 Points)

01 August 2011

My Form26AS for AY 2011-2012 shows TDS deposited u/s194A for Tata motors FD I purchased in 2009.

The tax was deducted at the rate of 10% of interest amount.

However, I have not received any interest in my bank account as I had chosen the "cumulative" plan.

My question : Do I have to show details of this TDS in ITR2 filing for AY 2011-2012. ? If yes, which part of ITR2 will reflect this information ?

Thanks,

Gaurav.

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3 Replies

C.A SHASHANK GOYAL (Chartered Accountant) (362 Points)
Replied 01 August 2011

Hi, In My opinion you must be getting one time amount on maturity and not the annual interest but in the income tax act we follow accrual concept and thus accrue every year and thus tax is brought into the picture , and therefore you need to show that amount of TDS deducted and you will also get the refund if your total income does not exceed maximum amount not chargeable to tax and at the time of maturity amount received over investment will not be taxable .

Now , you have to show the amount of TDS deducted in the ITR -2 under the TDS sheet as given in excel sheet .

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 01 August 2011

YES IT SHOULD BE SHOWN IN RETURN BECAUSE INTEREST IS TAXABLE ON ACCRUAL BASIS

Gaurav (IT Professional) (64 Points)
Replied 05 August 2011

Understood that I will show the tax under TDS sheet, but where should I show the income on which this tax is applied. Which schedule/ column in ITR2 should it go to ?

Originally posted by : SHASHANK GOYAL
	Hi, In My opinion you must be getting one time amount on maturity and not the annual interest but in the income tax act we follow accrual concept and thus accrue every year and thus tax is brought into the picture , and therefore you need to show that amount of TDS deducted and you will also get the refund if your total income does not exceed maximum amount not chargeable to tax and at the time of maturity amount received over investment will not be taxable . Now , you have to show the amount of TDS deducted in the ITR -2 under the TDS sheet as given in excel sheet .