Tax on bank interests

Tax queries 229 views 7 replies

Kannan

IT Professional

27 Points Joined March 2019

Good Morning! I am employed in private company and salaried person. I have the below questions regarding tax exemption and tax on bank accounts interests.

1. I have 3 bank accounts and have quarterly interests from my Saving bank account, Fixed deposits and Recurring deposits. I would like to get it clarified how tax is calculated on this.

There is an exemption of Rs.10000 (Ten thousand) on the interest component. Is it for each category separately or summation of interest of all the three, Saving interest + Deposit interest + RD interest.

2. When is the last date for paying the self assessment tax?

I tried to pay my self assessment tax for the bank interests AY19-20, but when I select the assessment year as 19-20, website is throwing the error "Assessment Year cannot be greater than the current financial year for the type of payment selected by you". Can you please help me in this regard too.

Thanks in Advance!

Regards,

Kannan V

Replies (7)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210405 Points Joined July 2016

1. Interest from all the savings account/

2. Select 'Advance tax' and pay the amount till 31.03.

Kannan

IT Professional

27 Points Joined March 2019

Hello Sir,

Thanks for your response. I am still having the doubt. Let me elaborate the scenario.
Let us say, My total interest on savings account across different banks is rs.14000
My total interest on Fixed deposits across different banks is Rs. 12000.
My total interest on Recurring deposits across different banks is Rs.11,000.

a) Do I have to sum all these interests, 14,000 + 12,000 + 11,000 = 37,000 - 10,000 = 27,000 is taxable (or)
b) Savings bank interest 14,000-10,000 = 4,000 taxable
Fixed deposit interest 12000 - 10,000 = 2,000 taxable
RD deposit interest 11,000 - 10,000 = 1,000 taxable.

Which one is correct.

on my 2nd query, I do understand that I need to pay the interests till 31st Mar 2019. But the website is throwing error on selecting assessment year as 19-20.

Thanks

Vara Lakshmi

44 Points Joined September 2018

a)correct

Kannan

IT Professional

27 Points Joined March 2019

Thanks for providing the clarification.

Sahil Jain (FAFD, DISA, CA)

Practicing Chartered Accountant

2481 Points Joined June 2013

For your query B, when you select Asst Yr 19-20, select advance tax and not self assessment tax, only then you will be able to pay it.
You can select Self Assessment Tax only if Financial year has ended I.e. after 31st March.