jraju (Others) (283 Points)
05 August 2014Hi, Hope that this atleast get posted.
From the forum postings and answers, i learnt that FD interest is totally taxable, and only interest on Saving banks account is exempted for tax purposes. But i still hear that Banks are allowing an amount of Rs. 10000 amount in FD deposits for this year.is it correct
If one fails to adhere to the date of submission of itr form, what are the alternatives one have.
CS Abhijeet soni Advocate
(CS LLB MCOM MBA (FINANCE) MPHIL CA INTER PGDCA PGDA&PR )
(931 Points)
Replied 05 August 2014
jraju
(Others)
(283 Points)
Replied 05 August 2014
Sir,
My question on FD does not find place in your answer. Moreover , i have missed the date. What is meant by revised return. Would you be specific
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 05 August 2014
intt earned on bank savings a/c or post office savings a/c are not exempt from tax but are subject to deduction u/s 80TTA upto a max of 10000.
in case of FD intt, what you have been hearing about 10000 is actually the limit u/s 194A. under this section, if a person receives FD intt from a bank of less than 10000 during a year then no tds is required to be deducted. but in case such FD intt is more than 10000 then tds @ 10% is deducted from such intt. amt.
if you failed to submit your itr within due date then you can submit it after the due date also upto 1 year from the end of AY. suppose you need to file itr for FY 13-14, due date of which was 31.07.14 but you failed to submit your return. then you can still file your itr till 31.03.15. however, if any taxes are payable then you will be liable to pay intt u/s 234A/B/C accordingly.
jraju
(Others)
(283 Points)
Replied 06 August 2014
Hi, Your information is what i expected.
The information that upto 10000 , no tds, here in this case, the bank will not deduct the tax voluntarity. And if it is more, then by giving required 15g or 15 h, we voluntarity commit that we will separately pay tax individually (institution safe guard). So, that means that any amount of FD is not exempted from taxation. Is that correct?
I will read the concerned section. How come that one section says that FD interest is not at all exempted and some exemptions under section 194 A. Pl clarify.
Also, what would be the penalty interest if one has to pay if he has to file belatedly u/s.234
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 06 August 2014
@ jraju.. you still have misunderstandings... let me help you clear it..
form 15g/h is not a declaration where we commit to pay tax separately. it is a declaration that our income including intt on FD will be below taxable limit and hence no TDS should be deducted. however, if after submitting form 15g/h to bank, our income exceeds taxable limit then we are required to pay taxes accordingly.
FD intt is never exempted from tax. section 194A gives a limit of 10000 that TDS is not be deducted upto this amt. this does not mean that if intt is below 10000 then its exempt. it is still taxable and the person has to pay tax, but bank will not be under obligation to deduct TDS on this amt.
sec 234A charges penal intt @ 1% p.m. for delay in filing of return.
sec 234B charges penal intt @ 1% p.m. for payment of advance tax liability less than 90%
sec 234C charges penal intt @ 1% p.m. for deferment of advance tax liability.
jraju
(Others)
(283 Points)
Replied 06 August 2014
Hi, The answer is up to the point and i got the clarification. 1% penalty on the tax amount to be paid for the year. is that correct? or should i have to pay lumpsum amount of some fine with this fine
Being a pensioner, i thought that I need not file the return, as i heard that the pension paying bank would auto detect the tax .
Can i pay the tax in the acceptable branch and manually hand over the I T form for this year. I have not filed the return for the previous year. Should i Have to file that also with penal interest. Thanks for clarification. Even IT staff would not clarify like this. They quote sections only which is very difficult to understand. May i expect a reply from you, sir
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 06 August 2014
thanx for such appreciation from you.
yes, the penal intt is paid on tax amt. why pay lumpsum amt when you can calculate exact amt. payable as intt. download "income tax calculator for FY 13-14" from caclubindia website and calculate your taxes.
it is true that bank deduct taxes, but only on pension amt. this is because they are not aware of other incomes earned by you even if it is FD intt in same branch.
you can pay taxes through bank or online.... prepare your return and submit to IT dept. manually if your total income is below 5 lakhs, otherwise you need to file your return online.
jraju
(Others)
(283 Points)
Replied 07 August 2014
Hi, once again thanks. The pdf of income tax manual still has 65years as senior citizens and the relevant section 194 is full of legal words very difficult to understand. Thanks
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 07 August 2014
jraju
(Others)
(283 Points)
Replied 07 August 2014
Hi, tribhuvan,
Please see this link and confirm
https://abcaus.in/articles/senior-citizen-income-tax-act.H T M L
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 07 August 2014
jraju
(Others)
(283 Points)
Replied 07 August 2014
https://incometaxindia.gov.in/Archive/Taxation_Of_Salaried_Employees_18062012.pdf
This is the book link, which incometax department website now has. Should not one get confused with this. This is released in 2010. This should be removed and latest tax information to payers should have been released. who cares
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 07 August 2014
CAclubindia
