TDS on bank term deposit interest income
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 May 2010
I have a query regarding TDS on bank term deposit interest income..
One of my client's bank has failed to deduct TDS citing that his interest income had exceeded much beyond threshold limit of Rs 160,000 p.a.
As my client was expecting his bank to deduct TDS (of about Rs. 30,000), he has not paid any advance tax for FY 2009-10 (as he felt this TDS amount of Rs 30,000 would have covered his entire tax liability).
Now his bank says it can not do anything about it.
My client's tax liability for FY 2009-10 works out to be Rs 21,000. He will have to pay this amount along with penalty.
Could you tell me:
a) How much will the penalty amount to?
b) How the penalty amount is calculated?
c) What action can he take against the bank for its negligence?
One of my client's bank has failed to deduct TDS citing that his interest income had exceeded much beyond threshold limit of Rs 160,000 p.a.
As my client was expecting his bank to deduct TDS (of about Rs. 30,000), he has not paid any advance tax for FY 2009-10 (as he felt this TDS amount of Rs 30,000 would have covered his entire tax liability).
Now his bank says it can not do anything about it.
My client's tax liability for FY 2009-10 works out to be Rs 21,000. He will have to pay this amount along with penalty.
Could you tell me:
a) How much will the penalty amount to?
b) How the penalty amount is calculated?
c) What action can he take against the bank for its negligence?
CA SANJAY MUKHERJEE
(Expert)
07 May 2010
1.No Penalty only interest to be paid under section 234B and 234 C.
2.Find the calculator in this link below https://webcache.googleusercontent.com/search?q=cache:9aSxEOBDE1QJ:www.caalley.com/ca/234B_C_INTEREST_CALCULATOR.xls+interest+under+s ection+234b&cd=2&hl=en&ct=clnk&gl=in
3.The bank is liable to I.Tax department for not deducting TDS and you can't take any action against the Bank.
2.Find the calculator in this link below https://webcache.googleusercontent.com/search?q=cache:9aSxEOBDE1QJ:www.caalley.com/ca/234B_C_INTEREST_CALCULATOR.xls+interest+under+s ection+234b&cd=2&hl=en&ct=clnk&gl=in
3.The bank is liable to I.Tax department for not deducting TDS and you can't take any action against the Bank.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Working on Gold wastage during Melting of old gold jewellery
- TDS on Dashcam rent and allied services
- ETDS return q4 25-26
- Royalty payments to the Mining Department for procurement of murum - GST input
- Capital gains in IT returns
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
