Tax on fd intt

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babugr

dgm

348 Points Posted on 12 March 2015

I am retired in 2014, June (60 years). I have recd. all my retiral benefits and distributed them in FDs, the interest earned on FDs is taxable, kindly clarify whether I should pay the tax now in March as advance tax or should I pay before filing of ITR in July'15, as my form 16 would be available in last week May'15 only. will there be any interest on tax not paid on FD earnings before March'15.

thanks

GR Babu

Replies (4)

CMA Poornima Madhava

CMA

9106 Points Posted on 12 March 2015

If FD is taxable, bank would deduct tax @ 10%. If your taxable income during the year falls within 10% slab of IT, no need to pay advance tax else you may pay advance tax to avoid interest liability, even though you receive form 16A in May from Bank

babugr

dgm

348 Points Posted on 13 March 2015

thank you for your quick response. I fall in 30% slab and being a sr. citizen I may get advantage of advance tax relaxation. my query is that my TDS from the employer is already taken care of, however my total tax liability is around 2 lacs higher than what is deducted by employer as per my calculation, whether I should pay now before 15th March or in July before ITR filed.

thanks

Babu

Rajesh

Former Director DRDO

89 Points Posted on 13 March 2015

Senior citizens not having any business income can pay self assessment tax at the time of filling tax return. No need to pay advance tax, no interest liability. Please read following article para 3: https://www.charteredclub.com/6-tax-benefits-for-senior-citizens/