Query of itr1 calculation with respect to tds

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

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) ?

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