My aunt gets pension around 2 lac and interests on FD gets accrued but did not get credit in her saving account. If interest gets credited in her account the net income will be more than 2.5 lac. Since interest was not get credited in her saving account she was under the impression the net taxable income is nil and did not file ITR in last two years. Also she submitted the 15G form so that TDS should not get deducted.
She is going to file ITR for last two years at once, Can you please tell me what would be the best way to go for this.
- Is it okay if she claims interests as lump sum amount on maturity of Fixed deposit for this year ITR filing(2016-17) and for previous year ITR she shows only pension income(less than 2.5).
- Or She should pay TDS on interest for every year separately, if yes what is the best way to do it. Does she need to file challan 280 first for every year and then mention the challan number in ITR?
- Or She does not have to pay TDS on interest, instead she will fall in tax slab of 2.5 to 5 if interest gets credited, she has to pay 10% tax directly ? Can you please confirm which one is correct out of 2 and 3 question.
- Is there any consequences if she files ITR for last two year at once ?
Please let me know if you have any concerns.
Thanks!
1 – Yes, she may do so. Ideally it is advisable to disclose interest income on Accrual basis every FY. Neverthless, she can disclose it as lump sum.
2 – TDS gets deducted by the bank and they issue TDS certificate. She needs to provide these details in her Income Tax Return.
3 – If TDS is not deducted, she can just disclose entire Pension income + lump sum interest income and pay tax dues accordingly.
4 – There should not be any issue.
Suggested readings:
Recurring Deposit Taxes & Fixed Deposit Taxes – How do they work? (RD & FD)
Income Tax Slab Rates for FY 2016-17 / AY 2017-18 (Budget 2016-17)
Latest Tax Deducted at Source (TDS) Rates Chart for FY 2016-17 / AY 2017-18
https://www.relakhs.com/new-itr-forms-ay-2016-17-tax-return-filing/
Thanks Sreekanth !
One more question, if my aunt got money from her husband and she made fixed deposit so only interest will be taxable. But if she breaks that fixed deposit in that case principal amount will be transferred to her saving account . So still that principal amount will not be taxable right ? Because she received from her husband. Can you confirm that.
If your uncle gifts money to your aunt, any interest income (taxable income) generated on such amount is clubbed to your Uncle’s income and is taxable accordingly.
Read:
Please login or Register to submit your answer