Tax savig fd interest

" now i see it was being paid already every quarter in to my account..."

It cannot be taken as oversight mistake ....... which continuously got repeated for last five years........

It will be treated as concealment of income, and liable for interest and penalty.

Though you may treat the total interest as capital gains in the final year and pay tax over it, to safeguard yourself against levy of any penalty..

Originally posted by : Dhirajlal Rambhia
	" now i see it was being paid already every quarter in to my account..." It cannot be taken as oversight mistake ....... which continuously got repeated for last five years........ It will be treated as concealment of income, and liable for interest and penalty. Though you may treat the total interest as capital gains in the final year and pay tax over it, to safeguard yourself against levy of any penalty..

yes i agree...it was absolutely carelessness on my part....all i have to say in my defense is the certifcate said tds will be deducted on maturity and all these years no tds was deducted hence i missed it....but i will do as advised and treat the whole interest as income in the final year and pay tax on that.

" my defense is the certifcate said tds will be deducted on maturity and all these years no tds was deducted.........."

In case, (usually doesn't happen), TDS is deducted at maturity; you will not be at fault at all, and as such have good stand to offer tax at maturity.

Originally posted by : Dhirajlal Rambhia
	" my defense is the certifcate said tds will be deducted on maturity and all these years no tds was deducted.........." In case, (usually doesn't happen), TDS is deducted at maturity; you will not be at fault at all, and as such have good stand to offer tax at maturity.

sir,

then can i calculate the total interest of these 5 years and show as income next year when it matures irrespective of if tds is deducted then or not. as anyway i can file rectification only for 2 years and not beyond tht, so no point....what would u advise me in this case?

What is the total interest amount? Aggregate of 5 years?

or each year?

Verification from bank, whether TDS will be deducted at maturity?

for each year it was about 7000/- tht was paid so for 5 years its 35000 and i cross checked no tds was dedcuted anytime till now for it

As per rules, TDS was not applicable to be deducted for any of the earlier year/s (being less than 10K), and will not be deducted even at maturity.

But as per FD receipt, if you can confirm the TDS deduction at maturity....... you have option to declare the total gain in the last year.........

Otherwise, as per rule, revise/rectify the returns of previous 2 years, & file rectification for earlier year/s.

Dhirajlal Rambhia- why interest earned over 5 year period is to  be treated as capital gain to pay tax. It can still be treated as Income from Other Sources- interest income. 

Originally posted by : Dhirajlal Rambhia
	Verification from bank, whether TDS will be deducted at maturity?

sir so shud i wait for 2 more years and then include the whole as my income after maturity or shud i start includeing it form this year and if i get notice then to correct it for the previous years?...what wud be the best approach?

Originally posted by : Dhirajlal Rambhia
	As per rules, TDS was not applicable to be deducted for any of the earlier year/s (being less than 10K), and will not be deducted even at maturity. But as per FD receipt, if you can confirm the TDS deduction at maturity....... you have option to declare the total gain in the last year......... Otherwise, as per rule, revise/rectify the returns of previous 2 years, & file rectification for earlier year/s.

sir the ceritificate says , maturity value is subject to TDS deduction whenever applicable"

Should i start including it from this year and if i get notice then to correct it for the previous years?...  ........... Yes, that would be better approach.......