However, subject to certain conditions. The total interest income for the year is less than the basic exemption limit, i. INR 2,50, Following are the things one should remember while filing the forms:. Details and PAN Card: One has to completely fill the form with all necessary details before submitting. Also, it is compulsory to submit the PAN Card details along with the form. Form Submission: It is advisable to submit the forms at the beginning of the financial year.
Certain recurring deposit schemes qualify for tax exemption, although rare. The interest earned on RD is taxable, and not tax exempted. Investors can invest in small amounts on a monthly basis up to a tenure of 60 months.
The scheme flowers guaranteed returns in the form of interest. The post office does not cut any TDS on the interest income from the recurring deposit. However, the interest income is taxable in the hands of the depositor. While filing income tax returns, it is mandatory to file income from other sources as well.
Income from other sources is any income that does not fall under the other four heads. Under this head, one has to enter the total amount of interest received from various deposits. Also, one can get an interest certificate from the post office branch. Suggest you to file your return online and you can also pay your tax dues if any online. Because here in my case 1st account holder discloses the saving account in his ITR but my query is that whether 2nd Account holder also need to disclose that account in his return?
Dear Deep, Yes you can pay offline too. All bank accounts held, therefore, joint accounts must also be disclosed.
Nothing else.. Also, kindly do not enclose any other documents like investment proofs etc. I have a FD which earns less than Rs interest. In the same branch I also have RD which earns more than Rs interest. Will these Two interest be treated separately for TDS i.
My question is, is there any TDS for the interest what i will earn and can i get any tax exemption for this.
Dear Shivakumar.. No tax benefit is available. But you can book a 5 year tax-saving FD fixed deposit and this can be claimed as tax deduction under section 80c. I have an FD of Rs. FD nature is yearly matured but in i get to know that Bank has deducted the amount of Rs. But when i visit the Bank they show us the TDS amount is aprrox for and approx for Therefore, In this case i have confusion that how tha amount of 70, deducted by Bank.
How thaey calculate this amount. Kindly tell me that how they calculated and Can we claim refund from Income tax after filling the Income Tax Return of last two years. I have been taken Pan Card. Then what need to say bank.
And what will be the further step for the same query. Kindly recommend the Procedure. I have RD account which was started in Feb with Indian post office. This RD is for 5 years. So when I will receive money in Feb, do I need to pay tax on interest earned? I was about to file returns for Assessment Year My son gives me Rs. My son, me or my husband?
My husband has his own taxable income. Dear Manju, In you hands. Received Gift? Find out if it is tax-free or taxable?? An amount of Rs has been deducted from my fd which was withdrawn in september The aggregate of deductible amount under chapter vi a comes to Rs only. If I make a taxgain deposit of RS. Dear Vinod.. Is it Rs 5k pa or pm? I am investing a sum of in an RD for 10 years from this year onwards. I need to know the following: 1 At what stage will the bank deduct the TDS i.
Dear Balaji.. Please advise. Dear Hamsa, You may invest in 5 year tax saving bank deposit. Read: List of best investment options. Dear Srikanth Our IT rules seem unfair. If we have account in minor name then we have to pay tax on interest of that account.
But what if I first holder am have a joint saving account with my mother second holder and my mother is a senior citizen. I think this should also be allowed. Hi, Ideally you can submit a mandate to your banker about the source of deposits for the said bank account. If you declare that your mother is the main contributor for the deposits, she can show the interest income earned on this account in her ITR. Else, banks generally deduct TDS or issue tax certificates in the name of the first holder.
Say if it is 8. If I am using a cash flows method of calculating interest income, will extension of FDs be considered income or not? In Feb , it matured and I got 1. In Feb , I got 1. Important thing to note here is that the FD actually matured in Feb and I could have got a similar cash flow return if I would have encashed the money and done another FD for the amount encashed.
Will this manual step change the taxable interest for that FY? I have a FD for 10 Lacs which is under joint name of myself and my wife i am the first name. I am confused on the following: 1. If salary arrears are apportioned to the respective previous years for IT computation under section 89 of the IT Act, how to consider PF arrears for claiming exemption. PF arrears also to be apportioned to the respective previous years or total PF arrears could be exempted in FY Dear Narasimhan..
If you have withdrawn PF amount after 5 years of service then it is tax exempted. My doubt is whether we can take the entire PF arrears for exemption under 80C in FY or to be apportioned to the respective previous FYs,.
Dear Manmohan.. Thanks for such an informative article. I had a doubt though. This differential tax will be calculated on the Principle amount as well or only the accumulated interest? I have a query on tax applicability on interest income from Recurring Deposits effective 1st June We want to know interest to be reckoned whether from 1st June prospectively or 1st April retrospectively to be included for tax computation for FY Dear Narasimhan, I believe that this new rule is applicable from June 1st and not from Apr 1st.
For RDs, Is interest rate compounded. Dear Akur.. I believe that it is compounded on a quarterly basis. You may check with SBI directly. I hope you have answer for this. I have 2 tax saver FDs which mature in At the time of opening these FDs , verbally, I was told that they could be re designated as tax saver FD s cannot be closed prematurely. I do not have anything in written. For last 15 days, I have been referred from one person to another and in last communication, virtual relationship manager referred me to NRI service center, which is basically a call center.
Call center is telling me to mark re book instead of re designate. Under terms and condition in the conversion form, it says fixed deposit will be liquidated and re-booked. Its much harder to communicate now as I am outside India. I am sure my situation is not rare. Resident to NRO and vice versa is a common phenomenon now.
Do have any suggestion. One can not redeem or close the Tax saving FDs before the maturity date. I believe you can escalate this issue to higher authorities of your bank.
If ok, share the name of your bank. So my question is whether my mother is liable to pay the taxes as she has no income besides receiving interest income on RD. Can she be liable to file the return under income tax? Or will the income receives by my mother be clubbed in the hands of my brother? If she does not have any other source of income and if this interest income is less than Rs 2. But do note that interest income from RD is taxable. I have a bank fixed deposit in the year for five years which is eligible for income tax exemption in the AY But it was not claimed in that year.
Now my question is shall I claim this fixed deposit in this AY Please reply as early as possible. I have a doubt. I have a couple of FDs that will be maturing in the next year. Do I have to pay the taxes in this year or once when they are matiured. Dear Ankur, It is better to follow accrual method. I have a question regarding accrued and paid interest for a FY and how to show the same at the time of filling return. This year the bank has provided me with interest certificate that shows accrued and paid interest separately.
My question is that doesnt part of accrued interest from the previous FY become paid interest in the current FY. Note that I have a sweep account where automatic FDs are made and interest is accumalated, however if a FD is partly broken, tax on that amount is paid to me right away. Thanks Sreekanth! So that means that accrued interest does become paid in the next financial year right?
From this FY onwards i would like to pay tax only on paid interest since I have already shown accrued interest in last FY, should i be paying tax on Paid interest in this year. I am confused, because these FDs are made from sweep account, and the accrued interest will be calculated based balance at a particular amount which changes throughout the year, so ideally the accrued interest will go on changing.
A CA friend had also advised the same but no amount appears in my form 26A as I have submitted form 15G to the bank and hence the bank is not deducting TDS. I used to submit the same as too many transactions used to happen because of my Sweep Account.
This year onwards I will not submit the same. Dear maryushka.. I am enriched with the information. I think, the clause of RD interest taxable applies to the FY and not from the financial year AY The point is that I have received Rs. Am I liable to show in the income received from other sources since I am a tax payer and pay the tax in in the AY? You have to show them in your Tax Return.
I want to open an RD account for period of 2 years. I checked RD calculators online for monthly installment Rs. I found the maturity amount is Rs. Could you please let me know whether my understanding is correct or not? Should I go with this option? Dear Avadhoot, It depends on the rate of interest right? You may check with your banker. You may have to show the interest earned on RDs in your Tax returns though just accrued but not paid in a given financial year.
Kindly note that TDS not applicable does not mean that it is tax exempted. Are FD accounts considered neither? Income Tax returns filing Thank you for article links, but my question 2 was not answered in those articles.
NRE account? Are these supposed to be disclosed too on the ITR forms? Dear Amit, You have to provide the details of all the savings and current accounts held by you at any time during the previous year. However, it is not mandatory to provide details of dormant accounts which are not operational for more than 3 years. Please reply.
This FD is due to mature later in It is cumulative and the order is to repay principal and interest upon maturity. Also, I am US Citizen. I do not live in India so am NRI. The response was that all that will be done at maturity. My question is, however, what will the Income Tax Dept think of this.
This is less than the exemption limit, so ultimately I owe no tax and can claim refund. Finally, all of this puts a monkey wrench in the foreign tax credit issue, as I can only request credit for the year taxes apply. As someone who lives in USA, this has become a headache for me, and I hope you can clear up my confusion. Please tell me what you think I should do here.
Dear Amit, Tricky situation. Just try this suggestion.. You can show the accumulated interest on your FD during the financial year in which the FD mature.
I want to stay with SBI. I am not understanding your suggestion to find some other bank. Is SBI doing it incorrectly?
But then you also advise that I can report accumulated interest in year it mature, so it seems you are saying that they are doing it correct. Are they right or wrong with their procedure? They issue TDS certificate after the end of Financial year. From individual point of view, we can either pay income tax if any on the interest income on annual basis or on maturity.
But, suggest you to include the interest income annually and pay taxes if any. Lol Sreekanth, that was funny! Anyway, I did finally get Form 16A, and it matches Form26as. Please talk more in detail about the difference between the two, perhaps giving examples with hypothetical numbers. As fare as I am aware, the Tax law says that the investor can choose either of the two for declaring interest income.
Though they provide the option, my suggestion is to follow mercantile system that is showing the interest income accrued though not paid every year and pay taxes accordingly. This will avoid getting tax notices too. The 16a was forwarded to my email within a few days. I do not think anything nefarious is going on, as it is the same details as what I can see in Form 26as. But it is strange the hassle with this. Anyway, in order to stay in the lower income slab, I will probably report accrued interest when I file my India return, apparently before August 31 now since deadline has been extended by New Delhi.
They will not be held in default, and there seems to be a lot of leeway offered to banks for not paying quarterly or yearly. IT says they can pay in the following year even! Dear Amit, Good to know that the issue has been sorted out. Thanks for sharing the update. It might be useful for other blog readers. Keep visiting! Anyway, I have the same questions as one other questioner asked, I posted above in that thread.
I renewed it for 1 more year i. I am not tax payer as i am having Income from salary less than 2. The Income Tax Department has lot of resources on how to file taxes. As of now the new ITR forms are not yet available, these may be available by 3rd week of June and it is better if you file your taxes before July 3st. IT dept website : incometaxindiaefiling. Dear Sameer, You can get Form 16 from your employer irrespective of quantum of income. Yes, new ITR forms are not yet available.
You can file it before last week of July. Dear Sameer, No, no need to provide. I have a Query. Suppose if i Invest Rs. What all the Taxes i should pay for this. Also during the Maturity of the Amount,whether any Tax need to be paid. Kindly guide me. If you pay income taxes on annual basis then no taxes are applicable on maturity amount. I am a retired SC.
Suggest you to submit Form 15 H for both the accounts? Are you a tax assessee? First of all thanks a lot for simplifying all aspects related to tax and investment.
Dear Rachel, Thanks for your appreciation. Keep visiting and do share my articles with your friends :.
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