Taxation on FD interest

Q & A ForumCategory: BankingTaxation on FD interest
Vai asked 8 years ago
I have a question related to FD interest. I had open FD of Rs. 1,00,000 in October 2016 for tenure of 1 year with interest rate of 7%. The bank interest certificate showed accrued interest of Rs. 3500 till 31-March-2017 and accordingly had deducted TDS of Rs.350 for FY-16/17. While filing last year’s tax return, I had added this amount of accrued interest (i.e. Rs.3500) in the Interest income and calculated my tax. In September 2017, the FD was matured and Bank deposited entire FD interest in my saving account minus TDS of Rs. 350. The net amount I received was Rs.7000-350-350 = 6300. My question is; While filing return this years’ return, Do I need to consider; (a) entire amount of interest Rs.7000 OR (b) amount of interest actually paid i.e. Rs. 6300 OR (c) Deduct amount of Rs. 3500 from total interest (for the interest accrued last year and had paid tax accordingly) and consider only amount of Rs. 3500 this year for tax computation. Also I am not sure how do I convince IT dept (if needed), because the Bank interest certificate shows Interest Paid Rs. 7000 and TDS deducted of Rs. 350 for FY-17-18. Please respond. Thank You.
2 Answers
Sreekanth Staff answered 8 years ago
Hi, For FY 2016-17, did you claim TDS of Rs 350 in your ITR? 1) - Amount paid or accrued in FY 2017-18 (April 17 to Oct 17) can be declared in ITR, with TDS entry (if deducted). 2) - The proof of interest income received can be justified based on your Form 26AS of FY 2016-17 & FY 2017-18.   Kindly read : https://www.relakhs.com/form-16-form-16a-form-26as-tds-itr/ https://www.relakhs.com/recurring-deposit-taxes-bank-fd-rd-interest-itr/ https://www.relakhs.com/misconceptions-on-tds-tax-deducted-at-source/
Sreekanth Staff answered 8 years ago
Hi, For FY 2016-17, did you claim TDS of Rs 350 in your ITR? 1) - Amount paid or accrued in FY 2017-18 (April 17 to Oct 17) can be declared in ITR, with TDS entry (if deducted). 2) - The proof of interest income received can be justified based on your Form 26AS of FY 2016-17 & FY 2017-18.   Kindly read : https://www.relakhs.com/form-16-form-16a-form-26as-tds-itr/ https://www.relakhs.com/recurring-deposit-taxes-bank-fd-rd-interest-itr/ https://www.relakhs.com/misconceptions-on-tds-tax-deducted-at-source/
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