TDS related

This query is : Resolved

DEVENDER THAKUR (Querist)
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23 July 2010 Dear Experts
We were having a Fixed Deposite with SBI of amount Rs. 650000 in Sep.2008. The FD matured in Aug 2009 and bank released the amount 689256 after deducting the TDS. we supposed the amount 689256-650000 = 39256 as the int on FDR. But now the bank issued us the TDS certificate showing the details as follows

int on FDR= 13738
TDS = 1374
Cess 42
total taz deducted =1416
Now what should we do?

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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23 July 2010 As per IT

As per Income tax Act section 194 A Interest other than interst on securities and payment thereof exceeding Rs 5000/- then the payer need to deduct the TDS @10%

Applicablity

All assess ( Except individual and HUF who is not subject to tax Audit

Fact of the Case

Interest deducted on FD

Reason for deduction

FD is expressly included with the ambit of section.

Secondly the amount was exeeded Rs 5000/-

Conclusion

You are an individual assessee.. If you are not subject to Tax audit u/s 44AB then eighter you can claim refund for TDS deducted by the Bank OR avail the exemption certificate from Income tax authorities and submit it to bank for Non Deduction...

DEVENDER THAKUR

DEVENDER THAKUR (Querist)
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23 July 2010 We are a partnership firm, and undergo tax audit. then what should we show the amount released as interest by the bank. we have shown it as the int on FDR.

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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23 July 2010 Firstly the interest are divided in two financial years.

1. 2008-2009
2. 2009-2010
bank deduct TDS amount which is mentioned above on int. of 2009-2010.
so this TDS set off for 2009-2010 firm tax liability only.

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