Interest on fixed deposit

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Nehal (Querist)
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15 July 2014 Hello Everyone,

My question is if my interest on FD for the year is less that Rs. 10000/- then do i need to pay any tax on that amount.
Under which section it comes.
Since i am filing ITR1 i am engtering Interest on FD as 6000/- but it gives me amount to pay tax.
Pls guide.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 July 2014 Do you have only income from interest on FD? If yes your tax liability will be nil and you can file ITR1. ITR1 can not show tax payable in the given case since income is below exemption limit.

Nehal

Nehal (Querist)
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15 July 2014 I am working.
My income from salary is Rs.299,626/- and PF is 21600/-
In onther income colum if i add 6000/- it gives Rs. 620/- to pay more.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 July 2014 Yes. Because this income is not shown in your firm 16 and therefore no TDS deducted. So you have to pay TAX on this income. Saving bank interest is exempted upto Rs 10000 not interest on FIXED DEPOSIT.

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Nehal

Nehal (Querist)
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15 July 2014 But TDS is not applicable upto Rs. 10,000/- for interest on Fixed Deposit.
Then why i need to tax on Rs. 6000/-
Pls guide.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 July 2014 TDS deduction threshold limit is Rs 10000/- but Interest on FD is not exempted. So you will have to pay Tax on it.

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