Interest on fixed deposit are taxable for 2013-14

Dear Jraju 

Under 80tta only saving bank interest is consider. FDs interst are not coverd under 80tta. If your total interest is below 10000, yes bank will not deduct your tds but the same should be taxed under other sources of income. 

Regards 

Interest on FD is fully taxable, whereas interest on saving account is deductible from gross income upto Rs. 10,000/- pa u/s 80TTA.

hi, manoj mehta,

                   one part of the answer is clear that FD is totally taxable. but you are saying that if interest accrued in One banks FD , if it less than 10000 for the year it will not get deducted. Please i want further clarification on it. Then if any interest on FD is taxable, then how the tax will not be deducted

                   

Dear jraju please refer to section 194a. The section will give you more clarity. Regards

The words in the said act  are too vague to convey the real meaning. So , i asked you to reply in simple understandable sentences. The vague terminology really in circular does not convey the meaning correctly giving rise to so much intrepretations.

Dear according to sec when the bank has to pay interest of fds more than 10000 in a year then they are liable to deduct your tds @ 10%. But if your interest is say 3000 then also it will be called as your income even though no tds is deducted by bank. Hence you have to add the accrued interest in your total income and hence taxable if your gross total income is above 2 lakh rs.(tax slab). I hope now you have understood the same if not can do pm to me. Regads

Hey, This clears not only my doubt, but so many who have but who do not raise. There are conflicting replies in this regard. Now , I am clear .Real jem of a reply

                       It is a peculiar thing, that when one gets notices from income tax department about tax default, then one go and check with all the details. The tax  is automaticallyl deducted when one is in service, but for others you have to be careful to avoid these kind of default notices. Thanks very much for your considered reply on the subject

                           On to one more clarification. Why this was given in 2012-13 and stopped in 2013-14.pl

Dear Jraju

Thanks for Saying "Real Jem of Reply". (i am realy gratify by this words)

In CCI we all are here to help you and many others who face difficulties in understanding things.

We welcome your querry and questions anytime.

Regards 

Manoj Mehta 

Hi, I have raised a query in my last post in this title. Why the authorities suddenly stops this in 2013-14, giving the same the exemption in 2012-13

Dear jraju last year also the section was exactly same. As 80tta was newly introduced in the same year there was some confusion in industry. Regards

Hi, Mehta sir,

 

                   One last clarification.

                    Can i add to the total salary the interest accrued on account of FD and arrive at the tax

                      Or should this FD interests from Banks are added and interest arrived separately and this should be added to the tax on salary.

                         If one has say 300000 and interest 25000 then add both and arrive at tax

                          Or tax for the first and then tax for the second, and both be added