Interest calculation

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SANJAY PATEL (Querist)
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18 July 2012 Dear Sir,

I have query regarding income tax payment with interest. My employer has properly deducted TDS from my salary. but, I would like to mention my reccuring deposit bank interest in my ITR. The amount of interest is Rs. 40000/- now I want to file the return for A.Y. 2012-13.So, please give me how to calculate the TDS & interest amount.

Kindly note that the rate of TDS is 30% slab already deducted by my employer.

I want to pay TDS with interest only on Interest income.

Thanks & best Regards,

Sanjay Patel

HRIDAYNATH PATRA

HRIDAYNATH PATRA (Expert)
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19 July 2012 In your case interest may be u/s 234B and/or 234C.

U/S 234B, interest will be 1% per month for 4 months (Apr to Jul) on differential tax amount. Interest amount would be Rs. 492

U/S 234C, as you have not paid any advance tax, you have to pay interest as follows:-

* On 30% of tax on 40000 i.e. on 3700 @ 1% p.m. for 3 months, interest is Rs.111 for default in paying advance tax within 15/09/11.

* On 30% of tax on 40000 i.e. on 3700 @1% p.m. for 3 months, interest is Rs.111 for default in paying advance tax within 15/12/11

* On 40% of tax on 40000 i.e. on 4900 @1% p.m. for 1 month, interest is Rs.49 for default in paying advance tax withing 15/03/12.

So total interest u/s 234C is Rs. 271
All total interest is Rs. 763

If you need any further clarification you may contact me.