23 July 2010
Dear Experts We were having a Fixed Deposite with SBI of amount Rs. 650000 in Sep.2008. The FD matured in Aug 2009 and bank released the amount 689256 after deducting the TDS. we supposed the amount 689256-650000 = 39256 as the int on FDR. But now the bank issued us the TDS certificate showing the details as follows
int on FDR= 13738 TDS = 1374 Cess 42 total taz deducted =1416 Now what should we do?
As per Income tax Act section 194 A Interest other than interst on securities and payment thereof exceeding Rs 5000/- then the payer need to deduct the TDS @10%
Applicablity
All assess ( Except individual and HUF who is not subject to tax Audit
Fact of the Case
Interest deducted on FD
Reason for deduction
FD is expressly included with the ambit of section.
Secondly the amount was exeeded Rs 5000/-
Conclusion
You are an individual assessee.. If you are not subject to Tax audit u/s 44AB then eighter you can claim refund for TDS deducted by the Bank OR avail the exemption certificate from Income tax authorities and submit it to bank for Non Deduction...
23 July 2010
We are a partnership firm, and undergo tax audit. then what should we show the amount released as interest by the bank. we have shown it as the int on FDR.
23 July 2010
Firstly the interest are divided in two financial years.
1. 2008-2009 2. 2009-2010 bank deduct TDS amount which is mentioned above on int. of 2009-2010. so this TDS set off for 2009-2010 firm tax liability only.
CAclubindia
