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Don’t miss these incomes while filing tax returns

Tax-61
With the tax filing season just in, you may have started compiling information to fill your returns or pay additional tax.
If you are filing through an auditor, chances are that your auditor will ensure that you have paid your taxes (called self-assessment tax), wherever applicable, on income that did not suffer TDS.

But if you are filing your own returns, online or offline, ensure that you take in to account all your income and pay self-assessment tax if any. A tax return, without payment of self-assessment tax can be treated as defective soon. A proposal to amend the tax laws to this effect was mooted in March.

What you can miss
If your bank or an NBFC had deducted TDS on your fixed deposit, then you would remember to disclose the income and also the tax deducted while preparing the returns. But many a time, income for which TDS was not deducted would escape your purview. Here are some such examples:

1. Interest income on fixed deposits if TDS is not deducted

Your annual interest income from a bank deposit may be lower than Rs 10,000 (Rs 5000 for company deposits) and as a result, the bank may not have deducted tax. But this does not make the income ‘tax free’. You would have to add them to your ‘income from other sources’ while doing your returns.

In case of recurring deposits with banks, no TDS is deducted, irrespective of the quantum of the interest. But the interest income is taxable. Yes, there is always the running debate of whether tax has to be paid on accrual basis or on receipt, when the deposit matures.

Popular expert opinion is that you may follow one of these (as no TDS is deducted) but paying tax on accrual helps spread the burden (instead of paying it in one go in the year of maturity). Also, sometimes disclosing the income in one shot, on deposit maturity, may even push you to the next higher tax bracket (if you are in the 10% or 20%).

2. Interest income on savings bank

Interest income on your savings bank accounts is exempt up to Rs 10,000 a year. Anything over this will be taxable. As your bank is not going to deduct TDS, do remember to include this income while computing your self-assessment tax.

3. Interest income on cumulative deposits

You may be holding a cumulative deposit that is maturing after a couple of years but your bank or company may have already deducted TDS on it. Besides intimation from the bank/company, you will actually see this in your 26AS Tax credit statement (available for you to view through your bank account or in the Income tax website).

It may be better for you to disclose the respective income in the year in which such TDS is deducted, to make it easier to correlate.

4. Interest income from bonds/debentures

If you have been holding infrastructure bonds that you bought a couple of years ago, remember only the principal amount would have received tax deduction. Interest payout from such bond is a taxable income. Again, if these did not suffer TDS, you may miss them out in your calculations. Do search through your bank statements or intimation from the company on interest credited for the year.
But remember, interest on tax-free bonds (such as the NHAI bonds) is exempt from tax.

5. Capital gains on mutual funds and equities

If you redeemed a debt fund or Fixed maturity Plan (FMP) in 2012-13, check if you have made any capital gain. If so, do take them in to account in your tax filing. Add them to your total income if the gain is short term (less than one year) or calculate the profits with indexation/without indexation (whichever is beneficial to you) and apply 10% or 20% (with indexation) as the case may be to compute tax.

Your FundsIndia account would have a summary of your capital gains.

If you sold your shares within one year of purchase, it attracts short-term capital gains tax. Check your brokerage account to know such transactions. Most online portals would have a neat classification of your short-term and long-term gains.

Remember to pay your self assessment tax, if the total tax calculated falls short of the tax paid by you so far either by way of TDS (deducted by employer, banks or companies) or advance tax. This may prevent any penalty/interest being shelled out by you later.

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106 Responses to Don’t miss these incomes while filing tax returns

  1. Karthikeyan June 1, 2013 at 6:01 pm #

    Another point to be mentioned: Even if TDS is applied for fixed deposits, it is normally done at 10%. However, depending on the tax slab an individual falls under, excess tax may need to be paid over that amount. For exmaple, If the individual falls under 30% tax bracket, then additional tax of 20% of interest income needs to be paid. This is also applicable to interest income for which TDS has not been applied (less than 10K).

    • Vidya Bala June 1, 2013 at 9:37 pm #

      Hello sir,

      Yes, TDS deducted would be less than 10%. But one need not calculate the addl. tax separately. All you need to do is add the interest income to your total income (which will include salary income etc) and calculate total taxes at your tax slab rate. Then TDS (all RDS, inlcudng TDS on salary) or advance tax, paid totally, shall be deducted. Thanks, Vidya

    • Ravi July 17, 2013 at 11:12 pm #

      My Savings bank interest for FY 12-13 is Rs. 25,653/- after 10,000 exemption , it is 15,653/- .My employer has not added this income to my Salary. How much tax should i pay as self assessment tax ( i am at 30% bracket ) tax + interest before submitting my return for the FY 2012 -13. Regards

      • Vidya Bala July 18, 2013 at 2:02 pm #

        Hello Ravi, If self asessment tax is over Rs 10,000 it normally attracts a 1% interest. Pl. check with an auditor. rgds, Vidya

        • Ravi July 18, 2013 at 10:25 pm #

          Tks Vidya , for the clarification

  2. pqr June 1, 2013 at 7:35 pm #

    If I sold debt funds less than a year after I bought them in order to buy equity funds, do I need to pay taxes on the short term capital gains? I would think so, but my bank gave me a capital gains statement that puts this amount in unrealized capital gains.

    • Vidya Bala June 1, 2013 at 9:50 pm #

      Hello sir, If you sold debt funds less than year after you purchased, you will suffer short-term capital gains, irrespective of whether you bought any other fund (equity or debt) or did not buy any fund. It is realised gains the moment the fund is sold. Kindly ask your bank your correct the same. Thanks, Vidya

  3. Rajiv June 13, 2013 at 2:56 pm #

    Due to a system error, my Bank did not calculate the FY 12-13 interest income on deposits correctly and did not deduct tds on that portion of income.
    The Bank says the left out income will be added now to interest income of FY 13-14 and tds entry made accordingly. According to Bank Form 26AS cannot be corrected now.
    How should i file my tax return- with the income and tds shown in Form 26AS or take a corrected income statement (prepared manually) from Bank and show that in ITR. If latter, there is a chance of double payment of tax- once with the correct income in my ITR and again when Bank adds this income to the income in FY 13-14.
    Please advise.

    • Vidya Bala June 14, 2013 at 10:28 am #

      Sir,
      This is best discussed with an auditor. Tks, Vidya

  4. B June 22, 2013 at 7:38 pm #

    If interest earned in SB account is Rs 5000 and interest via FD/RD etc is Rs 6000.
    The total is above Rs 10000.
    Do we need to pay tax on the Rs 11000? Or is it exempt because the two taxes are individually exempt?
    Can this tax be paid in June, before filing of return?
    Is there going to be an interest on this amount, if so after which date?

    • Vidya Bala June 23, 2013 at 6:19 pm #

      Hello Sir,

      Interest on SB account to the extent of Rs 10,000 totally (all bank accounts put together is exempt). This does not include FD interest. Hence, your FD interest of Rs 6000 is taxable. You can pay this before/while filing your return (before July 31). You will be charged an interest if you pay after July 31. Thanks, Vidya

  5. Krishma June 24, 2013 at 4:26 pm #

    i have recieved the Mutual funds redemption payment and dividend amount on MF. They are tax free but where i have to show entry for these while fling ITR?

  6. B June 26, 2013 at 2:02 pm #

    RD interest and FD interest are one and the same for this purpose?

    • Vidya Bala June 26, 2013 at 2:05 pm #

      Yes, both are taxable income. Tks Vidya

  7. Saurabh June 28, 2013 at 3:32 pm #

    Hello Vidya
    I have a question regarding RD tax. Let’s say RD has been done for 10 years time-frame, now as i understand interest earned on RD is taxable but what i am not sure about is when do i have to include this interest in my taxable income, do i have to do that on maturity or i have to see what amount of interest accrued every year and declare it accordingly in taxable income.
    Regards
    Saurabh

    • Vidya Bala June 28, 2013 at 4:21 pm #

      Hello Saurabh,

      This is a much debated topic and the general consensus is that you follow either of these consistently. If you start showing on accrual basis, follow that. Otherwise show it on receipt. Showing on accrual basis generally reduces the tax burden of having to pay in one go. Also often times, some times merely because of one huge lump sum interest income, you can actually move to a higher tax slab (only in case you are in the 10% or 20%) in the year of payment when receipt basis is followed. Hence accrual will help avoid that. Other than this, as long as there is no TDS (no TDS for RD), an income can be shown on accrual or receipt basis for individuals. Thanks, Vidya

      • Saurabh June 28, 2013 at 4:48 pm #

        Thanks so much for a prompt response as always!

  8. Jos June 29, 2013 at 3:43 pm #

    My bank has deducted TDS on my deposits . but 26 AS statement does not show nd income tax did not give refund last year because of this. I have been pointing out to the public sector bank a number times . What is the alternative left for me

    • Vidya Bala June 30, 2013 at 9:52 pm #

      Hello Jos, You could ask the bank to provide the TDS certificate and the same be submitted in IT dept. But the remedy for this is best discussed with an auditor. Tks, Vidya

  9. Aaryan July 6, 2013 at 12:43 am #

    Hi Vidya,

    I have below queries:

    1) What amount do we have to mention in section 80TTA. Is it 10,000 or the interest earned in Saving’s Account or the interest earned in Savings+FD+RD. (Max 10,000)

    2) Do we have to mention the interest earned in PPF account also in ‘income from other sources’. If yes, then where do we need to mention the exemption amount (as ppf is tax free).

    3) What in case some banks do not have PAN registered and hence the TDS is not reflected in form 26AS.
    Can the TDS paid in FY 2012-13 be now linked to my PAN.
    And if the account is not linked to my PAN, can I add its TDS and income in tax return for FY2012-13.

    Please help….Thanks

    • Vidya Bala July 8, 2013 at 10:10 am #

      Hello Aaryan,

      1. 80TTA applies only to interest on savings account. All interest on FD is taxable (whether TDS is deducted or not).

      2. Interest from PPF is exempt from tax.Hence you need not declare.

      3. Banks need to give you a TDS certificate if they have deducted. It is unclear as to what will happen if it is not disclosed in 26AS. Quite a few face this issue. Kindly check with an auditor.
      Tks
      Vidya

      • Dinesh July 8, 2013 at 5:48 pm #

        Hi Vidya,

        I have 9000Rs as Savings Account Interest Income and 5,000 as FD interest income. No TDS was deducted by the Bank for both of this.

        So should I include these income under “Income from other sources”?
        As we have a tax exemption of Rs.10,000 for Savings Account Interest Income can i leave it and just include my FD interest of Rs.5,000 alone?

        • Vidya Bala July 8, 2013 at 9:14 pm #

          Hi Dinesh, Show it as income from other sources and then claim deduction under Sec 80TTA.

          Vidya

          • Dinesh July 9, 2013 at 1:54 am #

            Thanks Vidya! One more question.

            Actually I started the FD on Jan 2013.Its a 1 year FD. So it will mature on Jan2014 only. So till then am not going to get any amount credited to my account. Am going to get the whole amount during FY 13-14 only.

            1.So should I include the interest accured during Jan, Feb and Mar 2013 to the “Income from other sources” during IT filing for FY12-13 or not? Or I should quote the whole amount during FY13-14 IT filing?

            2.If I need to include it during FY12-13 means,the three months interest come up to Rs.5000 only which is lesser than the 10,000 tax slab limit for FD’s for a financial year. So, can I leave it during IT filing ?

          • Vidya Bala July 9, 2013 at 12:30 pm #

            Hello Dinesh, You can either use accrual basis or receipt basis to file returns.
            For accrual basis, you should show the interest for the 3 months in current filing (all interest from FD is taxable. The Rs 10000 limit is only for interest on savings bank account).
            IF you follow receipt basis then show the entire interest in the next year i.e after March 2014.
            Thanks
            Vidya

  10. Vijaya July 9, 2013 at 1:53 pm #

    My mother has few FDs in SBI . Interest from FD being the only source of income to her. As per 26AS, interest of 1.1L was deposited for her in F.Y. 2012-2013 and accordingly 10% tax has been deducted (11000). However, my question is that is she not exempted from tax upto a limit of 2L? In such case where her only income is Interest and income is within 2L , she does not fall under tax limit , isnt it?

    • Vidya Bala July 9, 2013 at 2:19 pm #

      Hi Vijaya,

      Yes, your understanding is right. The interest income will be included for the overall limit of tax slab and in your mother’s case, she will not fall under the taxable limit. But you should have submitted form 15H for her to have avoided the TDS deduction. Now a return has to be filed to claim refund. For the coming year – FY-14, do ensure that Form 15H is submitted. Tks, Vidya

  11. Vijaya July 9, 2013 at 2:20 pm #

    Thanks for the reply. We missed submitting the form 15H. Will do it promptly hence on.
    Shall claim the refund by filing return now.

  12. Mad July 9, 2013 at 8:49 pm #

    I have not given form 16 for the bank FD, can I still file the returns with the bank deducted TDS and pay additional amount for the Tax bracket above 10%?.
    Also will there be any interest applicable while filing as additional income

    • Vidya Bala July 10, 2013 at 9:49 pm #

      Hello sir,

      your question is not too clear. Form 16 is given by employer for your income and TDS deducted. For banks, one submits Form 15G. If your bank has deducted TDs on interest, you simply have to show the full income (along with other income) and also the TDS deducted in the tax paid column and then pay the remaining tax if any. If you pay within July 31, there will be no interest charged on the tax. Thanks, Vidya

  13. Dinesh Drolia July 11, 2013 at 6:03 pm #

    Hi Vidya,

    Please suggest, if we have make FD of Rs.10000 in Bank and after maturity i get Total amount Rs.11000. So, what amount i should add in my ITR Return 1000 or 11000 ?.

    Regards,
    Dinesh Sharma.

    • Vidya Bala July 12, 2013 at 9:40 am #

      Hi Dinesh,

      Rs 1000 is the income from your investment. Hence Rs 1000 is what you need to declare.
      Vidya

  14. Pankaj July 12, 2013 at 6:53 pm #

    After adding Interest on fixed deposit to my salary income I have to give additional tax.
    For this should I pay additional tax under

    - Challan: CHALLAN NO./ITNS 282

    - Tax Applicable: (0024)INTEREST TAX

    - Type of payment: (300)SELF ASSESSMENT TAX

    Thanks,
    Pankaj

    • Vidya Bala July 12, 2013 at 7:59 pm #

      Hi Pankaj, all individuals’ income tax would come under ITNS 300 (income tax) – 0021 (other than companies) – 300 (self-assessment tax). What you pay is income tax not interest tax. tks, Vidya

  15. Kirti Azad July 14, 2013 at 2:25 am #

    I’m a government employee with annual income of 9 lakhs. I’ve a auto sweep account in SBI.As per form 26AS & form 16A by bank. Total interest for FY2012-13 is Rs 9832/- and TDS deducted is Rs 1088/-. Can i claim Refund for TDS deducted under section 80TTA? Which ITR form I’ve to fill while submitting ITR for AY2013-14?

    • Vidya Bala July 14, 2013 at 11:54 am #

      Hello Kirti,
      Banks do not normally deduct TDS on savings bank account interest. Sec 80TTA is only for interest earned in savings account. If the bank has deducted the same for deposits, you cannot use 80TTA. But overall, if your total tax payable (including salary and all income sources) is short of all your taxes paid, then you may have a refund. Pl. read http://www.fundsindia.com/blog/general/5-things-to-note-before-you-file-your-income-tax-return/3031 for the form you need to use.

      Tks, Vidya

  16. rahul July 14, 2013 at 11:37 pm #

    helllo.
    i have house rental income of rs 15000 per.mnth and fr the.entire yr it wil be fr 9 mnths 1.35 lakhs . also i am taking rebate on my house so wil this rental income be taxabl or not . if taxabl thn hw much tax i have to pay.i fall under 30% tax slab .

    thanks

    • Vidya Bala July 15, 2013 at 10:18 am #

      Hi Rahul,

      any rental income after claiming rebate and any interest paid on property loan will be taxable by adding it along with other income. if there is a loss after such deduction, then you can reduce such loss from other income.
      Tks
      Vidya

  17. Shome July 18, 2013 at 6:23 pm #

    Hello

    I am in need of urgent help. I have to pay tax on the bank interest I earned. Since I didnt pay within 31st march so now do I need to pay interest/fine also? If yes then can you please guide me how to calculate the interest/fine?

    Thanks
    Shome

    • Vidya Bala July 18, 2013 at 9:05 pm #

      Hello Shome, If youa re talking about savings bank interest, up to Rs 10,000 of interest is exempt. Beyond this, if it the tax is less than Rs 10,000, there is no penalty. If self-assessment tax exceeds this amt, then penatly will be 1% per month on the tax outstanding. Tks, Vidya

      • Shome July 19, 2013 at 11:17 am #

        Thank you Vidya for your response. The form 26AS is showing interest earned from bank is above 10k. So I have to pay self-assessment tax – if the outstanding tax is within 10k then dont I need to pay 1% penalty?
        On paying self-assessment tax do I need to submit any additional form during IT return filing?

        The reason for asking is the consultant who was filing my return for last few years made severe mistakes, so now I want to do it on my own.

        Regards
        Shome

        • Vidya Bala July 19, 2013 at 11:57 am #

          Hello Shome, Interest payable arises only if tax outstanding exceeds 10,000.
          As for payment of tax, if you are filing online, it will prompt you to pay the tax and a challan will be generated automatically. Otherwise you may visit your bank ans ask for an IT challan for paying tax. This challan is necessary if you are filing offline. In online, you will be required to quote the challan no. alone. tks, Vidya

  18. Prashant July 19, 2013 at 8:08 pm #

    Hi Vidya,

    I am a salaried employee and my tax assessment has been done by employer but i also have income from some other sources also and TDS has been deducted on that under sec 194C @ 1%.

    Do i need to highlight this in my Income tax return and to my employer?

    Is this income will be added in my total income and i need to pay any extra tax on that?

    I am filling ITR1 Form so how to highlight this income in this form?

    After including this income in my salaried income taxes are coming too high.

    Please suggest…

    • Vidya Bala July 20, 2013 at 2:05 pm #

      Hello Prashant, TDS under 194C is normally deducted in contracts. if this is one-off in nature then it will be an other source of income and would certainly need to be added to total income and tax has to be paid. But if you are doing a business and have been made contract payment then the income will be in the nature of income from business or profession and a different treatment will apply (such as allowing deduction for expenses etc).
      The income is certainly taxable and since TDS is deducted, it is best to disclose. Whether it is an income from other source or from business & profession is something you need to figure out or check with an auditor, based on whether this is paid for any regular service you offer.

      Tks, Vidya

      • Prashant Pant July 20, 2013 at 5:29 pm #

        Dear Vidya,

        Thanks for prompt response.

        The important point that i want to understand is since tds have been deducted at 1% already so is any more
        taxes i also need to pay on this or this is enogh.

        Also i am filling itr1 form for return through salary abd for this which form i need to fill.

        • Vidya Bala July 22, 2013 at 1:26 pm #

          Hello Prashant, 1% is a token deduction. If you fall under a certain tax slab, the respective rate has to be paid. As I said, which form would depnd on whether your income is from business or profession. Kindly seek assistance of an auditor to identify the nature of your income. tks, Vidya

      • AK Tiku July 20, 2013 at 9:41 pm #

        Hi Vidya
        I am a Pensioner. My Form 16 does not reflect the income earned through interest
        on FD’s. After adding this in the total income I have a further liability of paying tax of Rs 24473 ( After excluding the 10% TDS deducted by the banks). Now I will deposit
        this amount under self Assessment before 31st July. Do I have to pay any interest
        on this balance tax of Rs 24473. If yes, how much?

        • Vidya Bala July 22, 2013 at 1:31 pm #

          Hello Sir, If tax due exceeds Rs 10,000 then interest at 1% per month from the end of the financial year should be calculated. tks, Vidya

  19. Kaushik July 21, 2013 at 2:12 am #

    Hi Vidya,

    In form 26AS, Part A is showing the FD interest paid by bank with Zero TDS and status of booking is ‘F’. The Part A1 (i.e. TDS for 15G/H) of 26AS is showing FD interest paid by the same bank with Zero TDS and without ‘Status of booking’.

    Should we need to consider these as income for Zero TDS?

    If yes, then only Part A is need to be shown as income or Part A1 is also needed to show?

    Please sugget..

    • Vidya Bala July 22, 2013 at 1:33 pm #

      Kaushik, Your question is not clear to me. FD interest in general is taxable income. If TDS is not deducted because the interest was less than Rs 10,000 per annum then you need to pay tax. If TDS was deducted and not shown in 26AS then Pl. consult your bank. tks, Vidya

  20. Vijaya July 21, 2013 at 6:57 am #

    Hi,

    I worked for Microsoft India for quit few years and quit last Sep. When I quit , I sold the MSFT stocks accumulated over last 4 years (2008-2012).

    I would want to know how do I calculate the taxable amount for the same.

    Thanks,
    Vijaya

    • Vidya Bala July 22, 2013 at 1:37 pm #

      Hello Vijaya, If you sold international stocks, then there will be capital gains. For short term (less than 1 year) it is at your income tax slab rate. For long term it is 10% without indexation or 20% with indexation. Use an online to file tax. Such portals also make the job easier to calculate such taxes. tks, Vidya

      • Vijaya July 23, 2013 at 12:09 pm #

        Hi Vidya,

        Can you direct me to such online tax calculator where I can calculate the tax on the stocks?

        thanks

        • Vidya Bala July 24, 2013 at 11:08 am #

          Hello Vijaya, I meant online tax returns filing portals such as taxsmile cleartax or easyfiling. For mere capital gain calculation, just google for capital gains calculator India. Tks Vidya

  21. Mohan Doss July 22, 2013 at 9:03 am #

    Hi Vidya,

    My wife switched Jobs on Dec 2011 and during self assessment made on July 2012 she found that she had to pay an additional tax of Rs, 10,955/-. However she hasn’t paid the self-assessment tax and hence did not file the Returns for that year until now. I have calculated the penalty to be 12% of Rs. 10,955/-. Will she have to pay the penalty amount of Rs.5000/- (for non-payment of taxes) too?

    Will this will incur any penalty when filing the Returns for FY 2012-2013?

    • Vidya Bala July 22, 2013 at 1:52 pm #

      Hello Mohan,

      Yes, since the payment is made after the Assessment year (in your wife’s case for 2011-12 A.Y was 2013-13), penalty has to be paid. Tks, vidya

      • Mohan Doss July 23, 2013 at 10:08 am #

        Thanks Vidya!

  22. siddharth July 23, 2013 at 1:28 pm #

    Hi Vidya

    Nice post and informative discussion there on, I need expert advice on following points – request you to please help –

    1. I have Savings interest of Rs 2457 ONLY and interest of Rs 40 in Sweeping FD account (ICICI B2 account), as it is way below 10,000 Rs Do I still need to declare same while filing ITR?

    2. Short Term Equity based Trading Gains – I have some gains from Short term equity trading and my statement from ICICI direct shows purchase cost and purchase index cost – which one do I need to consider? Also can I deduct Sell and Buy brokerage expenses / STax paid as expenditures to calculate profit / Loss ?

    3. Also I have some losses (around 90K) from Doing Stock OPTIONS Trading? How to show these losses? Just as Capital gains / losses or there is different mechanism to show losses from EQUITY TRADING?

    Regards
    Sid

  23. Nikhil July 23, 2013 at 4:31 pm #

    Hi Vidya,

    My employer did not consider my HRA exemption while submitting Form 16 and hence my gross taxable income in Form 16 is quoted wrongly. As a result I am liable of paying additional taxes when I file my return.

    Can I make that deduction of HRA from my Salary while declaring my taxable income in Income Tax Returns? Can the Income Tax Department raise a query in that case if the taxable income from Form 16 is different from the amount that I have declared? If yes, how difficult is the process to handle such queries?

    Thanks in advance for your reply.

    Best regards,
    Nikhil

    • Vidya Bala July 24, 2013 at 11:14 am #

      Hello Nikhil, Yes you can make the deduction. As long as you have supporting in your records for any clarification if at all, it should be fine.

      tks
      Vidya

  24. Ajay July 24, 2013 at 11:07 am #

    Hi Vidya,

    Thank you very much for addressing all our concerns. I have one query;
    Had a few FDs on my mothers name for which TDS was 20% – reason we had not submitted the PAN card and hence they are not issuing the TDS cerficate Form 16A. They have just issued a TDS statement.

    Since the PAN was not submitted they are saying they will cannot issue Form 16A and now when the PAN has been given they are saying back dated TDS certificate Form 16A cannot be issued.

    How do I claim the refund then? Can you please help?

    Thanks
    Ajay

    • Vidya Bala July 24, 2013 at 11:53 am #

      Hi Ajay,

      You should send a request to the company/bank for ‘refiling’. They will update the records and send it to the IT office and the amount deducted at 20% will then be reflected under your name in the tax credit statement. If they agree to do this, you can claim the deduction.
      Ask them to also submit the dates on which the TDS was originally deducted, the CIN no. and BSR code. These will be proof for you that the tax was indeed remitted earlier. This is some proof if IT enquiries happen. Tks.

  25. Rahul M July 24, 2013 at 12:22 pm #

    Hi Vidya,

    I am a govt. employee and having following income in FY 2012-13

    Salary = 445000/-
    Interest on Saving Bank Account = 7200/-
    Interest on Fixed Deposit = 37500/-
    Dividend from Mutual Fund=5800/-
    Saving U/s 80C=100000/-
    TDS Deducted by employer=14,900/-

    My Query is :

    1. Which ITR Form should I use to file my return online.
    2. How much tax I have to pay after self assessment.

    • Vidya Bala July 25, 2013 at 1:12 pm #

      hello Rahul, Thanks for writing in. This forum use is restricted to investment ideas. Pl. use an online tax filing portal like taxsmile to calculate and fule your returns. Thanks, Vidya

  26. Sachin July 24, 2013 at 3:18 pm #

    Hi,

    If my PPF interest for the FY 2012-13 is more than 5000, then do I need to fill in form ITR-2? If yes, then are we also going to take EPF interest as exempt income?

    Everybody is talking about PPF account but no mention for EPF account!! Please throw some light.

    Regards,

    • Vidya Bala July 25, 2013 at 2:24 pm #

      Hi sachin, You have a point there. Unfortunately the whole thing is being debated. Pl. contact IT CPC help line. Tks

  27. naveen July 25, 2013 at 5:40 pm #

    Hello Vidya,
    My father is a senior citizen. His total income for the FY’12-13 is coming out to be 2.78Lpa. If I deduct 10k for savings interest exemption under 80TTA, then it comes out to be 2.68LPA which is around 18k above the tax exempted income. But he has also purchased a Life Insurance policy(ULIP) of 50000 for my mother, so the policy is in her name. Can he use this 50K and show it in his tax filing in 80C to get full tax exemption on the 18K or not? Pls advice.
    Thanks//

    • Vidya Bala July 26, 2013 at 11:21 am #

      Hi Naveen, Insurance premium paid on behalf of self, dependent spouse or child is allowed to be taken as deduction. Hence as long as he can prove (if reqd.) that your mother is a dependent, he can claim. But it is another matter as to why your elderly parents were sold an ULIP ( if it was sold to them recently), given their age.
      Remember, any senior citizens’ scheme deposited by your father in 2012-13 is also eligible for 80C. Thanks.

  28. pushp July 25, 2013 at 8:48 pm #

    Hi Vidya
    Is the interest earned in Multiple Option Deposit (MOD) account scheme in sbi taxable or exempted upto 10000/-

    • Vidya Bala July 26, 2013 at 11:15 am #

      Hello pushp, Normally that part of the interest pertaining to the term deposit, if you have one, under the scheme will be taxable. Hope your bank has credited them separately if you have a deposit. Tks, Vidya

      • pushp July 26, 2013 at 11:47 pm #

        Thanks for your reply.

        Want to ask one more question , while choosing which form to fill ITR 1 or ITR 2 , do we consider all exemptions u/ s 10 or only coveyance and HRA etc . for the limit of 5000 ?

        • Vidya Bala July 27, 2013 at 9:33 pm #

          Hello Pushp, unfortunately HRA etc. are also Section 10 exemptions. Hence the confusion continues on this. Tks

  29. Vineet July 26, 2013 at 12:27 pm #

    Hi Vidya,

    I have income earned through FD as 13450 for which TDS is 1345 which is shown in my account. There is one RD with which I received 5450 as interest on which no TDS is deducted by bank. While filing the returns I have below query-

    I have shown my income from other sources as 18900 ( 13450 + 5450), Can I show 5450 under 80 TTA to avail benefit?

    • Vidya Bala July 26, 2013 at 12:31 pm #

      Hello Vineet, 80TTA deduction is only for savings bank interest. the enture RD interest is taxable. Vidya

      • Vineet July 26, 2013 at 12:33 pm #

        Ok thanks for your reply.

        One more query. On my FD bank has deducted 10% of the interest but I fall in 20% bracket. How is the remaining amount charged?

        • Vidya Bala July 26, 2013 at 12:38 pm #

          Tax on your entire taxable income (including the interest yous aid)is calculated at your slab rate. Tax credits (TDS) is reduced from this tax calculated, and remaining becomes payable. So there is no worry of what slab the remaining will be charged.

  30. TG July 26, 2013 at 5:38 pm #

    Hello,

    I have recieved a payment from a media house for INR 600, for which they deducted INR 60 as TDS and gave me a cheque of INR 540. This INR 60 is reflecting in my TDS statement in the online e-filing site, but this is not in my Form 16.

    If I include this (INR 600) in the “Income from other sources”, then there is an increase of only “1 Rupee” in the total tax payable in difference to the Tax deducted (TDS from salary + INR 60).
    So my return will become “Tax Payable”.

    What should I do. Should I include this and pay an amount of INR 1 as self assessment tax or should I delete the entry from the TDS page?

    • Vidya Bala July 27, 2013 at 9:45 pm #

      Hello sir, to my knowledege Re 1 will be rounded off by the authorities. But you may call the helpline of IT dept to check this: 1800-425-2229, and Phone Number – 080-22546500

  31. Raina July 26, 2013 at 9:56 pm #

    I have to pay an additional tax of about 18000 for interest in my fd. How to calculate interest? is 1% pm or pa and this interest is to be calculated from march or any other month?

    • Vidya Bala July 27, 2013 at 9:35 pm #

      Hello Raina, 1% per month From April 1. Tks.

      • Raina July 28, 2013 at 2:05 am #

        Thanks a lot Vidya Ji..But i read somewhere that FD interest comes under advance tax, so have to calculate interest under either section 234B or 234C from the month when less advance tax has been dedcuted?Pls help

        • Vidya Bala July 29, 2013 at 10:29 pm #

          Hello Raina, Pl. check with an auditor on the specifics. If you have paid some form of advance tax (which can be TDS on salary or any other deposit etc) and there is amount pending over Rs 10,000 after all that, then the interest is under the sections mentioned by you. That is 1% per month.

  32. Nidhi July 27, 2013 at 2:31 pm #

    Hi Vidya,

    I am having bank interest amounting to Rs. 5614/-, so it will disclose under income from other source in ITR-1 and it will deduct under sec 80TTA.

    Please advise is this right treatment.

    • Vidya Bala July 27, 2013 at 9:32 pm #

      Hi Nidhi, If you mean savings bank interest, yes it is income from other sources and you can claim Ch VIA benefit under 80TTA. It is is deposit interest, then there is no 80TTA benefit. Tks, vIdya

      • Nidhi July 28, 2013 at 1:41 pm #

        Thanks for the reply..:)

  33. Prakash July 27, 2013 at 8:21 pm #

    I have only interest income . I can not give 15G form as my income is taxable. I should be paying tax on amount exceeding 2 lacs while the bank deducts on entire amout. How should I prevent this?

    • Vidya Bala July 27, 2013 at 9:30 pm #

      The bank should be deducting 10% if you submitted PAN. If you are in the 20-30% tax bracket then you should not have a problem. Otherwise, try to split deposits across banks in such a way that in at elast some of the deposits, your annual interest income is less than Rs 10,000. That way, the said bank will not deduct TDS and you can avoid unnecessary refund everytime. Tks.

  34. Chetan July 27, 2013 at 11:35 pm #

    Hi Vidya,

    I made mistake while paying self assesment tax online.
    I have paid the right amount ( i.e rs. 8000) i was suppose to pay as per calculations but while mentioning the basic tax ( 4000) and education cess ( 4000) did a goof up.
    education cess should have been 3% of basic tax.

    Do i have to pay it again to correct it and wait for refund? or be assured that i have paid the required tax. Thanks.

    • Vidya Bala July 29, 2013 at 10:32 pm #

      Hello Chetan, better to do a revised return. It is the same procedure, just that you mark it as revised.

  35. Shruthi July 28, 2013 at 12:13 am #

    Hi Vidya,

    I had taken long term tax saving bonds/FD from bank. (5yrs bond)
    After filing my Tax return I viewed my 26AS form… which shows TDS on Interest on FD.
    I had taken up this FD so that I can save tax but i’m again ending up paying Tax
    Plz help..

    Thanks
    Shruthi

  36. Shruthi July 28, 2013 at 12:14 am #

    I had taken long term tax saving bonds/FD from bank. (5yrs bond)
    After filing my Tax return I viewed my 26AS form… which shows TDS on Interest on FD.
    I had taken up this FD so that I can save tax but i’m again ending up paying Tax
    Plz help..

    Thanks
    Shruthi

    • Vidya Bala July 29, 2013 at 10:30 pm #

      Hi Shruthi, tax-saving FD gives deduction on the principal amount you invest in the year of investment (under Sec 80C). The interest income is indeed taxable. Consider PPF next time if you want interest to be tax free. Else, go for mutul fund tax-saving schemes. Thks.

  37. Smita July 28, 2013 at 2:28 pm #

    Hi Vidya,

    My bank has given me a TDS certificate for the amount they deducted at source, for my FD with them. Form 26AS however does not have any mention of this. How and where do I enter this information while tax filing.

    What could be the reason behind Form 26AS not showing the FD TDS, when my PAN is linked to the bank account? Request you to reply at the earliest.

    • Vidya Bala July 29, 2013 at 10:24 pm #

      Hi Smita, If the bank did not remit the money or the updation is not done t NSDL, 26AS may not reflect it. Pl. ask your bank to sort this out. But if you have a TDS certificate, you may go ahead and claim but inform your bank to ensure that it is updated. Thanks. Vidya

  38. Harshit Patel October 7, 2015 at 12:32 pm #

    Hi, About Interest income from bonds/debentures, I know they are taxable but instead of paying tax on accrued interest, can we pay tax together on interest upon maturity?

  39. Harshit Patel October 19, 2015 at 8:02 pm #

    Hi, About Interest income from bonds/debentures, I know they are taxable but instead of paying tax on accrued interest, can we pay tax together on interest upon maturity?

  40. Harshit Patel November 8, 2015 at 8:24 pm #

    Hi, About Interest income from bonds/debentures, I know they are taxable but instead of paying tax on accrued interest, can we pay tax together on interest upon maturity?

  41. Harshit Patel November 22, 2015 at 8:16 am #

    Hi, About Interest income from bonds/debentures, I know they are taxable but instead of paying tax on accrued interest, can we pay tax together on interest upon maturity?

  42. Arathi Patil December 21, 2015 at 2:58 pm #

    HI , IS( MAT )TO BE PAID FOR INFRASTRUCTURE ?

  43. Anurag Bansal January 10, 2016 at 1:28 pm #

    Hello.. I have an Fixed Deposit with my Bank (PNB) which i have i pledged to them for creation of an OD limit. Can the Interest payable to Bank for overdraft balances be deducted from my Gross Income while calculating Taxable Income, or will be a disallowed expense?

  44. Nauluri Venkata Narasaiah January 13, 2016 at 6:23 pm #

    Hi,
    i paid tds through online banking, i want credit my a/c is it possible or not please help us

  45. Tushar Satpathi May 21, 2016 at 11:15 am #

    When I open to see my form 26AS , I hv noticed that some banks show the FD interest amount even if no TDS is deducted (due to submission of Form 16G/H) but some banks do not show it at all. Not very sure what guidelines are actually given by RBI to banks in this respect . Could you pls throw some light on this issue.

  46. Rabiyadeen Deenrabi June 8, 2016 at 4:40 pm #

    My father was expired on 26.01.2016. The income tax of Rs.29,080/- was deducted by Indian Bank on 31.03.2016. His Age was 75 and senior citizen exemption limit for income tax Rs.3,00,000/-. His pension was calculated upto February 2016. But February 2016 pension was also stopped. Upto January 2016 his pension income Rs.2,90,860/-. But Bank calculated upto February 2016 Pension of Rs.16,717/-. Total pension income Rs.3,07,577/-. But Februay pension he did not receive. Bank replied me that Non submission of PAN No. the tax was deducted 20% of the total income. But he is eligible senior citizen exmeption Rs.3,00,000/- he is not liable to pay tax because for the year 2015-16 his pension income only Rs.2,90,860/- February he is not alive and pension also stopped by the Bank. In this situation how I claim the refund.

  47. Abnash Soneja June 14, 2016 at 8:49 am #

    I purchased a property in april 2008 and sold on may 2012 and the profit was deposiyed with bank in capital gain account. now i want to reflect it in my income this year after paying tax @20%. As per I TAX deptt I have to fill aindeminity bond that this income will be reflected in my incone in this financil year. Can I have a specimen of Indeminity bond to be given.

  48. Jim Kim June 17, 2016 at 11:22 am #

    Hi, the salary for March 2016, got credited to the account on 1st April 2016. The income for taxation purpose would be part of Fy 15-16 or FY 16-17??

  49. Madhusudan Sharma July 31, 2016 at 3:54 pm #

    The information availble is lucid, brief, and simple for understanding.Thanks.