Goongan (Student) (450 Points)
28 January 2008Dear Friends, I have following doubt during articalship
1.Whether interest from saving bank taxable under income tax act. If yes under which head and section.
2.Interest form Income tax refund taxableunder income tax act. If yes under which head and section.
3.Whether interest from PPF (Public provident fund) taxable or Exempted. If exempted whether u/s 10 or U/s 80C.is it right that ,interest exempted for first fivr year only...
C.A.PAPJI
(PRACTICING CHARTERED ACCTT)
(27 Points)
Replied 29 January 2008
S K Nagaraja Singh
(Articleship)
(46 Points)
Replied 25 March 2008
HI,
I AGREE YOUR ANSWER FOR POINT (1) & (3).BUT FOR QN:(2) MY ANSWER IS DIFFERENT, AS THE INCOME TAX PAID IS NOT ALLOWED AS DEDUCTION WHILE COMPUTING TAXABLE INCOME,THE REFUND OF INCOME TAX IS NOT TAXABLE IN THE HANDS OF ASSESSEE.........
CA divine
(........)
(71 Points)
Replied 12 April 2008
hello bos interest other than interest on securities is taxable only if the folloing condition is satisfied:
1) any banking company paid or credit any interest during the financial year on term deposit like( cdr (cummulative deposit reciept) fdr ( flexible deposit receipt) etc.
2) and the amount of intt. is exceeding 5000 rs. (up to may 31,2007) in any financial year and from 1st june 2007 onwards the intt amount is 10000( means exceeding 1000 rs. ) in a financial year
3)tds deductable under saction 194A
4) rate of tds is 10% +10%+3%
10%= applicable only if in case of individual & huf receipt is exceeding 10,00,000 in one financial year
10%=applicable only if in case of company receipt is exceeding 1,00,00,000 in one financial year
CAclubindia
