Income tax issue with Bank FD's
Hi Respected Members,
Please note this is one simple issue regarding Income tax TDS on Bank Fixed Deposit's on Accrued interest.
The Banks are deducting income tax (TDS) on accrued interest on FD's on March 31st of any FY. Please note the accrued interested in not realized interest on your Fixed Deposits. And the last installment of advance income tax payment is on March 15th, and you don't have any information OR time to pay your Income tax. Since the last date for paying advance tax is Mar 15th. So this will cause you to pay your income tax with penalty during your IT returns filing. Though citizen's promptly paying income tax and unnecessarily penalized, due to lack of data and time. This is some what tricky issue, need to resolved before this 2015-16 FY closure.
This issue should be addressed and resolved by proper Govt and Ministry level authorities.
Please share, write me your opinion, comments, suggestions and solutions if already you have.
Appreciate your views in advance.
Arun more
Please note this is one simple issue regarding Income tax TDS on Bank Fixed Deposit's on Accrued interest.
The Banks are deducting income tax (TDS) on accrued interest on FD's on March 31st of any FY. Please note the accrued interested in not realized interest on your Fixed Deposits. And the last installment of advance income tax payment is on March 15th, and you don't have any information OR time to pay your Income tax. Since the last date for paying advance tax is Mar 15th. So this will cause you to pay your income tax with penalty during your IT returns filing. Though citizen's promptly paying income tax and unnecessarily penalized, due to lack of data and time. This is some what tricky issue, need to resolved before this 2015-16 FY closure.
This issue should be addressed and resolved by proper Govt and Ministry level authorities.
Please share, write me your opinion, comments, suggestions and solutions if already you have.
Appreciate your views in advance.
Arun more
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View all 39 comments Below 39 comments
Dear Om Prakash ji, Please understand the process banks following. If you say it is not complicated, you are ignoring few things. Many people senior citizens/students depending on interest earnings, it matters. When banks do TDS on Mar 31st on your accrued interest. The details you get in June, and end up paying penalty. Just for the sake of no information. Please read relevant comments. Regards Arun more
Mar 16
There is no complication. Neither interest nor TDS acrues on 15th March. In any case, if you are required to pay Advance tax, you must be a big Tax payers, obviously not bothered about these tit bits. more
Mar 15
I agree with Sri Viswanathan Subramanian. IT filing. rules and regulations, many complicated rules makes a common person feel that the whole system is designed to approach only CAs for filing returns. It is very confusing and interpretation can be any thing. A good CA will twist and make IT return statements which can be understood only by IT department. We boast ourselves as more savvy nation but not for a common man. Many business persons, legal and medicall practioners collect fees without receipts and money goes unnoticed by IT department. One has to read and read to understand the IT tax clauses only to frustrate themselves. The best way is to file returns as per the slabs and feel satisfied that we have helped our nation. Jai Hind more
Feb 28
Senior citizens who do not have any income under head Income from business or profession are not required to pay any advance tax. Hence question of penalty or levy of interest does not arise if advance tax is not deposited. Any tax liability, after adjusting TDS, however must be cleared by the time ITR is filed with in its due date more
Feb 28
I differ with Mr.Ravinder Goyal on the collection of interest details from the bank and calculation of total interest income etc., from the accrued certificate from banks in advance. I don't know which bank promptly give such certificate to facilitate us to calculate. We have to visit not more than 5 to 6 times even to enter our pass books to check whether the periodical interest have been credited properly.Moreover all senior citizens are not tech savvy and not capable of understanding the rules of the games of both Bank and IT Dept. If you don't provide any information they just cut your income without even informing you. Hence it is not practical for all persons to understand and comply with the provisions of IT Act. OK. Let me put a question how many traders, builders, and other persons pay tax promptly and comply with the provisions? Harassment is happening only for the persons who complied earlier and not able to submit details now at this age owing to various reasons. more
Feb 28
