POSTED BY July 17, 2013 12:59 am COMMENTS (3)ON
While e-filing, it was given that an amount of Rs.1501/- was taken as Tax(TDS) by bank for the interest that they gave.
It was SBI sweep accounts(multiple), so I don’t know exactly how much interest I got. The account details are not available as I have taken the whole amount before it matured.
Do I need to declare this income while e-filing? or can I omit that, as Tax is already taken?
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3 replies on this article “Do I need to declare the Income from bank interest, if Tax is deducted at source?”
Thank you all 🙂
Plain saving bank account do not cut TDS on interest earned.
As you had Auto sweep facility the excess amount was moved to Fixed Deposit. Interest earned on Fixed Deposit is subject to TDS by Bank if the amount exceeds Rs. 10,000.
For FDs bank deduct tax @10%.
But interest on FD is taxable as per your income slab. So if you are in 30% income slab you need to pay more tax.
You should show the interest earned as Income from Other sources and pay any remaining tax due.
Why we suggest you show it in your ITR as if TDS is deducted it would show up in the Form 26AS. So Income tax department knows about it.
Our article Income From Other Sources :Saving Bank Account, Fixed Deposit,RD and ITR explains how to show it in ITR
Ignore it at your own peril!
Shanu, Since TDS already deducted, you should declare this in tax filing. Since bank has deducted TDS ask the bank to provide the form 16 for the same. It will have all the details you required.