Do i need to fill itr-2 ?

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Himanshu (Querist)
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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?

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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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.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 June 2014 you can continue filing ITR 1 (subject to earning exempt income less than Rs 5000)

please note that TDS on interest is at 10% only. the remaining tax is to be paid by you.

Rupesh Jain

Rupesh Jain (Expert)
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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.

Himanshu

Himanshu (Querist)
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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.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 June 2014 yes this is what you need to do.

Bank will always deduct at 10% only. you pay the remaining tax.

you can file ITR-1 subject to "exempt income" being less than Rs 5000. otherwise you file ITR-2

Himanshu

Himanshu (Querist)
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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.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 June 2014 then you need to File ITR-2.

sadashiv Rupchand Gaikwad

sadashiv Rupchand Gaikwad (Expert)
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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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