31 July 2016
MY BANK HAVE GIVE ME INTERST CERTIFICATE, IT CONTAINING INT PAID = RS. 10319 INTERST ACCRUAL =RS. 32204
BANK HAVE DEDUCT TDS ON WHOLE AMOUNT 10% = RS. 4208
SO THESE QUSTION ARISE 1. WHAT AMOUNT SHOULD BE DECLERE IN IT RETURN 10319 OR 32204 OR TOTAL 42523
2 IF DECLERE 10319 CAN I CLAIM REFUND OF TDS( 4208-1031= RS. 3177)
3 IF DECLERE 42523 WILL IT PAY TAX ON IT BECAUSE I HAVE GROSS TOTAL INCOME RS . 716680 AND BELONG 20% TAX SLAB, BUT BANK HAVE DEDUCT TDS AT 10% ON INTERST
03 August 2016
Interest income is taxable on accrual basis. My suggestion is to declare Rs.42,593/- as interest income of the current year and pay balance tax. Alternatively since the amount of Rs.32,204/- is not received, you can declare income of Rs.10319/- and claim corresponding TDS Credit of Rs.1031/- in the current year ITR. TDS credit of Rs.3177/- can be carry forwarded. Declare the interest income of Rs.32,204/- and TDS of Rs.3177/- in the year in which interest income would receive.
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