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Income tax on interest of saving account

Sainik Das (PSU) (52 Points)

12 June 2017

Sir,

I have two questions which arised while I started filling the ITR-1 for Assessment Year-2017-18:

1) suppose my earning from interest of all saving account is Rs. X and bank deducted Rs. Y as TDS. Then during calculation of payable of extra tax (20% or 30% slab) do I need to pay tax on Rs. (X-10,000) or flat on Rs. X (question arised since no tax is payable for interest payable below Rs. 10,000)??

2) during efiling, amount is showing in the box of "interest u/s 234B" and "interest u/s 234C". what is this amount and why is this showing?

Please clarify the points so that I can file ITR without any mistake.

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11 Replies

PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 12 June 2017

1) You got this interest from FD or Savings Bank?

2) Section 234B:-

If your total taxable liability during the year more than Rs. 10,000/- and you didn't paid minimum 90% of tax as TDS or Advance tax whaterver then section 234B is attract.

3) Section 234C:-

If your total taxable liability during the year more than Rs. 10,000/- and you didn't maintain the providion of Advance Tax then section 234C is attract.

Note:- Kindly study about the provision of Advance Tax.

Due Dates for payment of Advance Tax

FY 2017-18 & FY 2016-17

For both individual and corporate taxpayers

Due Date	Advance Tax Payable
On or before 15th June	15% of advance tax
On or before 15th September	45% of advance tax
On or before 15th December	75% of advance tax
On or before 15th March	100% of advance tax

Sainik Das (PSU) (52 Points)
Replied 12 June 2017

1) Sir, on saving account.

PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 12 June 2017

How much interest from saving A/c you got?

Sainik Das (PSU) (52 Points)
Replied 12 June 2017

Interest : Rs. 33352

TDS deducted by bank : Rs. 3470

Should I calculate tax on Rs. (33352-10000) or flat on Rs. 33352??

Sanjay S (Chartered Accountant) (1375 Points)
Replied 12 June 2017

If you have income (other than such interest) which when added with above interest exceeds basic exemptn limit..then show interest (rs.33,352) under income from other sources.. Then claim Rs.10,000 under sec.80TTA in Part C of ITR-1. The slab rate shall be based on Net income (after reducing rs.10,000).

If this interest is your only income... Then you are not liable to pay tax since this income does not exceed basic exemption limit... Just claim refund of entire TDS amount by filing ITR 1.

PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 12 June 2017

Do u have only this income?

Sainik Das (PSU) (52 Points)
Replied 12 June 2017

No, I am salaried employee

neeraj gupta (1138 Points)
Replied 13 June 2017

Add 33352 to your other income. TDS 3470 should be added in taxes paid. if u use java utility with prefill, the TDS entry will automatically show. Also claim 10,000 under 80TTA in deductions. This will effectively make it interest income as 33352 - 10000.

1 Like

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 13 June 2017

Mr. Sainik dad.,
You are Salaried employee. If Your salary + SB interest is exceed the basic exemption limit and after calculate your tax liability is more than 10k you fall under interest calculation.
Sec 234B & 234C for advance tax related and 234A for late filing related...
If you have any deductible in Cha VI-A you go to without tax liability and you have refund your deducted amount. But, you don't have that... you paid the tax liability for noted amount....

1 Like

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 13 June 2017

In your view Your income is more than 4L include SB interest. So, 234B & C is applicable in your case.
You go to file before 31st July. If not also applicable 231A for late filing...