I have fixed deposite in bank for one year. After one year my fixed deposite automatically get renewed for one more year including the interest amount. Now please tell me, the interest amount is taxable or not. I did not withdraw my money. I am in tax slab of 30%. I got notice from income tax dept that my e return not matching with form 26as. After completion of one year 10% tds deducted. I have to pay remain tax? Have I pay the tax with interest due to late payment ? I have filed return for income of year 2016-17
The interest income is taxable and will be taxed at your slab rate (30%). Since tds was already deducted @10%, you were supposed to disclose the same in your itr and pay the remaining taxes accordingly. Since you did not disclose, your return does not tally with 26AS.
Regards,
Nikhil.
Interest on fixed deposits are taxable under the income tax act. However, as you have reinvested the amount in an Fd, the same remains exempt under section 80C of the act up to a total limit of 1,50,000.
As far as the notice, file a response accordingly showing that the amount of interest earned is claimed as exempt attaching the necessary documents supporting your claim. If the interest income is not declared, I would urge you to file a revised return and pay the outstanding amount of taxes, if any.
Should you have any questions, do let me know.
Dear Sir,
Income Tax Department is correct in this case as the Income is accrue arise in current year only of which you will enjoy benefits in next years.
Just by not withdrawing the amount doesn’t conclude that you have not earmed it.
As bank have credited the interest to your Account (Saving / FD) and deducted TDS thereon @ 10% in such case, remaining 20% with interest has to be borne by you only.
Thanks
CA Sourabh Pahuja
Income will be taxable, you have to pay Tax on the Interest earned in the year in which it was reflected in 26AS.
Yes Interest will also be charged on the Tax Liability.
Yes, You are liable to pay tax on interest earned on fixed deposit.
You can pay the taxes now.
My clients just received the same type of notices. You need to pay tax on the interest on FD alongwith interest. TDS on interest is deducted @10% whereas you are falling under 30% income tax slab. You need to pay difference of 20% alongwith interest.
We may assist you in return filing and reply to the notice from the deptt.
Please send the original return and copy of notice to my email I'd .com.
7060029944
Charges are very nominal.
Yes the interest amount is taxable in your hand.
Yes you have to deposit the tax and file the rectification return and then reply to the notice
Hi,
The interest earned on fixed deposit each year is taxable at the applicable tax rate.
Since, the TDS gets deducted at the rate of 10%, you need to pay the remaining differential taxes on the same. And, yes, since the tax payment is no made within due date, now whatever will be the tax liability, the same needs to be released along with the interests.
Thanks
Damini
You have to include interest income in your return as income from other sources and claim tds already deducted and pay the bal tax..you may not have checked the 26 AS before return filling thats y received notice.
Yes u have to pay additional taxes along with interest if any.
