Income tax queries

Dear Sir,

1) Please also collect Form 16A certificate and Interest certificate on the letter head of the bank if you are having multiple FD's with the bank. Department usually asks for Form 16A certificates to cross-check. Form 26AS is annual statement of tax deducted on your account.

2) There is no TDS liability on banks if interest on saving account exceeds Rs.10,000 but you need to disclose the entire amount, pay tax and claim deduction of Rs.10,000 u/s 80TTA.

3) Not allowed.

Thanks

Hi

1. Ideally you should collect TDS certificates Form 16A from the bank. You should contact the bank for the same. Also, the bank issues a statement of FD at the year end. Having such statement for documentation is recommended.

2. No matter whether the bank has deducted TDS or not, you need to mention the entire interest income in the income tax return. TDS, if any, shall be reflected in the ITR. You can claim 10000 deduction for saving bank interest under 80TTA.

3. No, late fees and penalties under income tax act are not allowable as deduction.

Hi,

Hope you are doing well.

1. Yes, you need to collect Tds certificates (Form 16A) as well as Interest certificates from bank . However, form 26AS is also sufficient .

2. No, Bank is not liable to deduct tds on 'Savings account interest'.

You have to pay tax on above Rs 10000 interest and clain deduction of Interest upto Rs.10000 u/s 80TTA.

3. It is not allowed.

1. Form 16A (TDS certificate) is an important part of the record you should keep.

2. Interest on savings bank account only exempted upto Rs 10,000 if age less than 60 years. Rest you are liable to account for all the interest income and pay taxes according to your tax slab. There is no special rate of tax on savings accounts. Banks only deduct TDs, and you pay remaining per your slab. If you are 60 years or above, Rs 50,000 exemption available for interest from both savings and fixed deposits.

3. Interest paid for delayed tax payments is not allowed as an expense, as it is in the nature of a penalty from Govt.

Hi sir,

1. There is no need to keep TDS certificate if the same is reflectef in 26AS

2. Pls go through Section 80TTA , Saving interest exempt upto Rs 10K

3.No the same will be disallowed while calculating taxable liablity.

Hi

1. 26AS will be sufficient but there are cases where tds is deducted but not reflected in 26 AS.it happens when there is return filling error from deductor's side. So it advisable to have tds certificate also.

2.No tds is deducted on saving account interest.Its tax free till Rs 10000 .You have to declare it in income tax return and can claim deduction on it under sec 80TTA.

3.All penalty and fines paid is not deductible expense.

Hope it clarifies.

Hi,

1. You may ask the banks to give you the tds certificate. However that is not mandatory. Form 26 AS should be sufficient.

2. It is your responsibility to pay taxes on all the interest income. However you can claim an exemption of Inr 10000 on Saving Banks interest. On the remaining (incl Fd interest), you will need to pay applicable taxes.

3. No. That is not allowed.

Regards,

Nikhil

1. 26AS is enough.

2. Banks do not deduct TDS on savings interest. (Further if they were deducting then it would have got reflected in 26AS).

You get deduction under section 80TTA for bank Interest.

3. No fine & interest paid under any statute are not allowed as deduction.

HI,

Hi ,

I have 3 queries.

1>

I have few FDs . Banks deduct 10% TDS. which reflects in ‘26AS form’. I pay remaining 20% TDS. I am keeping that 26AS TRACES form in my record for future reference as it contains everything . Do I also need to collect “TDS certificates” separately and need to keep in my record also ?

I was told to keep 26AS only . Please advise. I did not record TDS certificated from beginning.

If you have 26 AS, THEN no need to collect form 16 A, however if you can keep it from now on, it would be great.

2>

Do BANKs deduct TDS on ‘savings account interest’ also ( interest more than 10000 ) . I am getting over 10000 INR as savings interest from multiple accounts across all banks. Do I need to pay full tax on saving interest? Or banks already deducting 10% on it..

in 26AS I think I can see TDS deduction on ‘Fixed deposit’ only.

Banks typically are instructed to deduct TDS on all interest whether FD or savings, however as a banking practice, they do not deduct taxes on interest of savings bank. You need to pay taxes on total interest of all banks in excess to 10000

3>

Late fine for not paying Advance tax on time- can it be included in expense record in next year ?

No, that is not valid as per tax law. Interest on advance tax can be taken as expense but not fine or penalty. Hope it clears if i think what u r asking it is.

Thank you

Damini

Hi,

1. Going forward, it's recommended to keep form 16 as well in your records. It's just an additional proof but it's good to have it. Form 26AS is also ok.

2. Banks do not deduct TDS even if saving interest is more than 10k. You will have to pay 30% tax on the same.

3. No, it's not an allowable deduction. It can't be included.

Hi

Find below point wise reply on your queries:

Generally you are not required to keep form 16A i.e. TDS Certificate with you as every information (26 AS) is online available and can be excess by you & Income tax officer too, but once your case will be selected for scrutiny officer can ask to show form 16A.

Banks don't deduct TDS on saving bank interest but you are required to pay taxes on this if total interest exceeds 10000 in a financial year, if you are a senior citizen then 10000 will be replace with 50000 as Finance act 2018 made some amendments for senior citizen

Interest and penalty cant be treat as an expenses under income tax act