07 May 2010
I have a query regarding TDS on bank term deposit interest income..
One of my client's bank has failed to deduct TDS citing that his interest income had exceeded much beyond threshold limit of Rs 160,000 p.a. As my client was expecting his bank to deduct TDS (of about Rs. 30,000), he has not paid any advance tax for FY 2009-10 (as he felt this TDS amount of Rs 30,000 would have covered his entire tax liability).
Now his bank says it can not do anything about it.
My client's tax liability for FY 2009-10 works out to be Rs 21,000. He will have to pay this amount along with penalty. Could you tell me: a) How much will the penalty amount to? b) How the penalty amount is calculated? c) What action can he take against the bank for its negligence?
07 May 2010
1.No Penalty only interest to be paid under section 234B and 234 C. 2.Find the calculator in this link below http://webcache.googleusercontent.com/search?q=cache:9aSxEOBDE1QJ:www.caalley.com/ca/234B_C_INTEREST_CALCULATOR.xls+interest+under+s ection+234b&cd=2&hl=en&ct=clnk&gl=in
3.The bank is liable to I.Tax department for not deducting TDS and you can't take any action against the Bank.
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