Educational cess on tds on fixed deposit

gnanika

I will have TDS for my salary and TDS for interest on fixed deposit. Now EC and SHEC are not paid by bank while deductiong TDS. So that EC and SHEC amount is not a shortfall of tax which I need to pay to the IT department. Due to the EC and SHEC on TDS on interest the TDS is not equal to tax payble.

Regards

Hi

In that attached file, plese see the sheet named Income Details. In that sheet, in the area marked by 'INCOME & DEDUCTIONS' the following row is there:

Should I fill the TDS that has been deducted by bank on interest earned on fixed deposit at this row?

In that case should this TDS on interest on fixedd eposit be included in the following row that is in the same sheet where they describe TAX Computation:

If it should be included in 8 then in the following 9th row EC, SHEC will automatically be charged. Is not it?

How to fill up, if I am wrong?

Regards

EC stands for Education Cess and

SHEC stands for Secondary Education Cess

My dear suppose you TDS is Rs.10,000/- and your tax liability is also Rs.10,000/-.Now how this presented in ITR have a look:

Computaion of Tax

Income Tax                                                                                        9709

Add: EC @ 2%                                                                                   194

Add: SHEC @ 1%                                                                              97    

Total Tax Liability         (9709+194+97)                                                                    10,000/=

Less : Tax Paid 

          1.TDS                                                                               10,000

          2. Advance Tax                                                                     -

          3. Self  Assessment Tax                                                       -                       10,000/=

Balance Tax Payable/(Refundable)                                                                            NIL        

I think this example would clarify your doubts

IRFAN:

Suppose I see bank has deducted Rs. 900 as TDS on interest in fixed deposit. How to present this then ITR1?

Regards

This should be presented as follows

I believe that you can fill the appropriate bank Name and its PAN and just do not copy what the bank name and PAN I have filled because its invalied and I think you do understand it.

IRFAN

How shall I fill the sheet marked by 'Income Details' in the attached file for this Rs. 900 of TDS on fi interest on fixed deposit?

Regards

My dear you go to point no. 3 in ITR1 and just fill whatever interest has been credited in your FD Account. You have to take Gross Interest Received inclusive of TDS deducted from it.  

IRFAN

Bank has informed that total TDS deducted is Rs. 900 and I see in 26 AS the total TDS sent by bank is Rs. 900. What should I  fill in point no. 3 then?

Regards

Education Cess is not applied on TDS

hey boss...banks when deduct tds ...will not add up the cess along with it...but it doesn't mean that there is no cess on income tax...when u calculate ur total income and tax payable automatically cess is added on whole tax payable...tds is just deducted at end from ur  total tax liability towards the govt..and for total tds deducted by bank u have to take tds certificate from bank...

Can anyone explain how I shall fill up the sheet having name 'Income details' in the attached file while my bank informed a TDS of 900 has been deducted for interest on fixed deposit?

Mr B. Just fill the interest credited to your fd.

Since in your case tds mentioned ny u is 900/- then interest earned would have been 9000 & only Rs 8100/- u would have received in u'r account.

So in point no. 3 mention it as 9000/-. In Form 26AS, income also would be mentioned against which tds has been deducted, so just mention it.

Hope it is clear now.

nO EDUCATION Cess is there in case of TDs on Interest from FD...!!!!!

gnanika/all

What to mention then in point number 8 and 9 in the same sheet?

Regards