Dear All,
Do i need to show bank interest on my fixed deposits in my my return. If yes, where to show that.
Secondly ,bank has deducted TDS on those deposits and has issued Form 16 A to me. Do i need to pay tax again on that interest by clubbing it with my salary income. Pls clarify. Thanks
Rohit Kumar
yes you have to show interest on fixed deposit in your income tax return under the head income from other sources.
you dont have to pay extra tax just compute the total tax liability including this interest with your salary income and ajust the TDS deducted by bank.
Firstly you have to show bank interest under income from other source.
Secondly you have to calculate your total tax liability(ie salary , bank interest etc) after that you have to deduct the TDS paid by you from the liability ,the balance will be the net tax payable by you.If TDS is more then your tax payable then you can claim refund of excess payment.
| Originally posted by : CA RICHA BOTHRA | ||
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Thanks for the reply. Again i have a query. Bank is deducting tds on interest accrued @ 10% flat. Example i have Rs 100,000/- fd with bank. Bank gives interest @ 10% per annum after deducting tds @ 10% on interest. Therefore net interest would be Rs 10,000-Rs 1,000= Rs 9,000. By adding Rs 9,000 in income from other sources, my net income reaches the Rs 3,09,000(Income from salary Rs 300,000). So do i need to pay taxes on Rs 3,09,000 as per income tax slabs. Pls advice. |
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Thanks for the reply. Again i have a query. Bank is deducting tds on interest accrued @ 10% flat. Example i have Rs. 100,000/- fd with bank. Bank gives interest @ 10% per annum after deducting tds @ 10% on interest. Therefore net interest would be Rs. 10,000-Rs 1,000= Rs. 9,000. By adding Rs. 9,000 in income from other sources, my net income reaches the Rs. 3,09,000(Income from salary Rs. 300,000). So do i need to pay taxes on Rs. 3,09,000 as per income tax slabs. Pls advice.
You have to calculate tax on Rs. 310000 and not on Rs. 309000 as per the slabe rate.From the tax liability deduct the TDS paid by you.The resultanf figure will be net tax payble by you or refund.
On gross income you have to deduct sec 10, 80c and other investment details. You will get the net taxable income. Calculate the income tax as per the slab and deduct the tds already deducted from your salary. You need to pay only the balance tax.
Agreed with CA Richa Bothra
Yes agree with Richa your total income will be 310000 .(Income from salary 300000, Income from other sources 10000)TDS Rs 1000 should be deducted from the tax liability if you have . otherwise it will Refund.
Firstly you have to show bank interest under income from other source.
Secondly you have to calculate your total tax liability(ie salary , bank interest etc) after that you have to deduct the TDS paid by you from the liability ,the balance will be the net tax payable by you.If TDS is more then your tax payable then you can claim refund of excess payment.
You have to calculate tax on Rs. 310000 and not on Rs. 309000 as per the slabe rate.From the tax liability deduct the TDS paid by you.The resultanf figure will be net tax payble by you or refund.
whether Barclay Bank PLC is a scheduled bank or an NBFC, becoz if it is NBFC then a prop. firm is required to deduct TDS on interest amt on a loan from the same
| Originally posted by : CA RICHA BOTHRA | ||
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Firstly you have to show bank interest under income from other source. Secondly you have to calculate your total tax liability(ie salary , bank interest etc) after that you have to deduct the TDS paid by you from the liability ,the balance will be the net tax payable by you.If TDS is more then your tax payable then you can claim refund of excess payment. |
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CA Richa is correct,.go ahead
CAclubindia
