Educational cess on tds on fixed deposit

Page no : 3

Varshit Shah (Self Employed) (676 Points)
Replied 19 July 2012

Mr.B

As u Said you are in receipt of 2 types of Income :

1.) Salary Income - Point 1 in Income Details for eg. 2,40,000

2.) Bank FD Interest - Point 3 in Income Details eg. 9,000 ( Rs. 900 TDS + Rs. 8100 either credited to your bank account or accumulated )

So your Total Income = 2,49,000 (Point 4 in Income Details)

Now i assume your age below 60 yrs & you have not invested any money under section 80 C - Point 5 in Income Details.

Point 8 - Tax Payable on Total Income

0-180000                                                                  nil

180001 - 249000 i.e. on 69000/- @ 10%  -          6900

Point 9 - EC including SHEC - @ 3% on 6900/-    207

Total Tax Payable - Point 10                                7107

Now Fill up TDS deducted by Bank in Point 24 under TDS sheet as mentioned by Mr.Irfan (U have to Mention TAN instead PAN)

In given example u will have to pay - 6207 after considering 900/- tds of bank.

If you still have any doubts then do mention your actual details without your name & PAN number. Will calculate & let you know ( if you are comfortable ).


B (Engin) (205 Points)
Replied 20 July 2012

Varsh*t Shah
 

 

My bank told total tax deducted on interest on FD is Rs. 900. That means I will have to pay the SHEC and EC on it while filing IT return. Is not it? Please let me know.

For salary part, an organization deducts the TDS and EC, SHEC for an employee.

Regards


Varshit Shah (Self Employed) (676 Points)
Replied 20 July 2012

Mr. B

Yes, you have to pay EC & SHEC  on TDS deducted by bank. Earlier there was a provision where Bank used to deduct TDS with EC & SHEC (i.e. effective rate of TDS was 10.3%) . But after amendment & to simplify procedure for TDS , now EC & SHEC is not deducted by the bank.


Aman Khanna (Finance Advisior) (196 Points)
Replied 28 July 2016

TDS is applicable only on earned interest on Fixed Deposit. If interest amunt exceed Rs 10,000 then 10% TDS will applied on that. Education cess is different thing. It will not applicalbe on TDS.



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