Schedule tds2 of itr2


  Dear Friends,
      I had an FD with my bank for Rs 100000 and bank has deducted TDS on that and the same is showing in 26AS statement for FY 2011-2012. TDS deducted for FY 2011-12 was Rs 800/- on interest paid by bank of Rs 8000/- (all rounded off figures).
      Now I broke the FD prematurely this FY year (2012-2013) and consequently the interest rate that was applied on my account was reduced and some penalty was applied. I basically have two questions on this scenario:
      
      a) Would I be correct to assume that this would have the affect of reducing my accrued interest for last FY 2011-12 on which bank had paid the TDS ? If this assumption is correct then question b follows
      
      b) Could someone guide me as to what should be filled in Schedule tds2 (columns -->> Financial year in which TDS is deducted, Total tax deducted, Amount out of (4) claimed for) and Schedule OS income (column I(b)-->> Interest, Gross) sections of form ITR2 based on above values (amount, TDS, etc). Also, it would helpful to know how to fill in case of both scenarios (accrual based on non-accrual based methods) of accounting here.
      
      Really Appreciate your help..
  Rgds
   \\RK

Replies (2)

As the amount involved is not creating material impact on the tax liability, for conveniency , Consider Interest as shown by Bank 

i.e. 8000, and TDS Rs 800.

.

Adjustment of penal interest, which will also going to be a small amount,  can be made against current year's interest income on FDR or against any other Interest Income. 

.

 

 

Thanks very much Bafna sir. I do understand I would have to pay tax. But what should I enter in the respective schedules per part (b) of my question above ?

Best Regards,

Rohit

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