Query of itr1 calculation with respect to tds

ITR 1282 views 3 replies

Rabi

Team Lead

29 Points Joined June 2013

Hi All,

I am male (aged 28 Years) and will be filing an online ITR1 return myself. I am a salaried person and also have some earnigns from Bank FDs. I have some query regarding ITR1 calculation.

As per my Form-16 I have come up to following calculation.

Taken from From-16		Calculated as per ITR-1 for (FY 2012-2013 - AY 2013-2014)
Earnings (FY 2012-2013 - AY 2013-2014)		Earnings (FY 2012-2013 - AY 2013-2014)
Income chargeable under the head 'Salaries'	825170	Income chargeable under the head 'Salaries'	825170
		Interest from Bank FD Interest	27757
Total Earning	825170	Total Earning	852927

TDS Deducted		TDS Deducted
From Salary	74150	From Salary	74150
		From Bank FD interest	2778
Totol TDS deducted	74150	Totol TDS deducted	76928

Deductions under Chapter VI A (Section)	115216	Deductions under Chapter VI A (Section)	115216

Total Taxable Income	709950	Total Taxable Income	737710
Tax payable on Total Income	71990	Tax payable on Total Income	77542
Education Cess	2160	Education Cess	2326
Total Tax and Education Cess	74150	Total Tax and Education Cess	79868

Tax payable	0	Tax payable	2940

As you see if I declare Bank FD interest on ITR1 calculation I end up paying Rs 2940 to IT Depatment.

Is my ITR1 calculation correct or am I missing anything here?

Any input is highly appreciated.

Thanks in advanced.

Replies (3)

CA Ruben Balooni

Professionalism ™

1324 Points Joined December 2008

Your ITR-1 Calculation is absolutely correct.

Let me explain the computation of tax on FD Interest to you.

FD Interest : 27757

Income Tax Slab in which you fall : 20% (500000-1000000)

Tax On FD Interest : 27757 x 20% = 5551

Education Cess on above computed tax : 5551 x 3% = 167

Total Tax on FD Interest : 5551+167 = 5718

Now, TDS on FD Interest : 2778

So, Net tax payable by you on FD Interest : 5718-2778 = 2940.

I hope the computation is clear to you now.

Regards,

CA Ruben Balooni

Rabi

Team Lead

29 Points Joined June 2013

Thanks Ruben for the quick reponse and clarification.

My question here is, as we have already paid TDS on Bank FDs and once again we are paying tax as part of ITR1 calculation?

Is it mandatory to declare Bank FDs earnings in ITR1 computation, as its simple increasing my tax slab hence I end up paying more tax (tax on tax) ?

CA Ruben Balooni

Professionalism ™

1324 Points Joined December 2008

Originally posted by : Rabi
	Thanks Ruben for the quick reponse and clarification. My question here is, as we have already paid TDS on Bank FDs and once again we are paying tax as part of ITR1 calculation? Is it mandatory to declare Bank FDs earnings in ITR1 computation, as its simple increasing my tax slab hence I end up paying more tax (tax on tax) ?

See Rabi you have paid TDS @ 10% on FD Interest and you are liable to pay tax @ 20.6% (including education cess) on your income over and above 500000, hence you have to pay extra 10.6% (20.6%-10) tax on FD interest.

And yes every assessee is required to disclose his correct income in his ITR.

And there is no double taxation (tax on tax) as you are just paying the balance tax payable on your income.

Regards,

CA Ruben Balooni