How to declare Income From Bank Interest

POSTED BY Vinu ON April 4, 2013 6:23 pm COMMENTS (5)

I am salaried person and my taxable salary fall in 20% income tax slab. I also earn bank FD interest which is more 10K. I have following questions:

1. Generally Bank deduct 10% TDS. As I fall in 20% slab how to get additional 10% deducted? 

2. If I have to pay 20% to income tax department on my own, how to declare and how to pay the income tax online? What will be the last date?

Please suggest which is the best possible solution in this case.

Regards,

Vin

5 replies on this article “How to declare Income From Bank Interest”

  1. Dear Vinu, the applicable challan no. is 280 (payment of Income Tax & corporation Tax).

    Please take last year’s interest as base & declare the same as your income in current Fy to your employer. In case the actual interest ‘ll be less than the declared one, you can claim refund from IT deptt. In case actual is more, you w’d have to pay remaining tax as usual.

    thanks

    Ashal

    1. Vinu says:

      ThankYou Ashal, for the clear explanation.

  2. Dear Vinu, please calculate your remaining tax liability & from your netbanking enabled account you can pay your due tax as self assessment tax. As you are salaried employee, from current FY i.e. 2013-2014, you can declare your interest income & the TDS amount from bank & your employer ‘ll deduct the remaining amount & you ‘ll not have to take pain to pay the remaining tax.

    Thanks

    Ashal

    1. Vinu says:

      Thanks Karthik and Ashal.

      Just need two clarification:

      1. In the link you given do I need to pay under “CHALLAN NO./ITNS 282” for income from bank interest?

      2. As I have the Sweep-in/Sweep-out account, for current FY i.e. 2013-2014, I may not know the exact interest amount from bank till March-2014. How should I declare the income from bank interest?

      Thanks
      Vinu

  3. Karthik says:

    To pay the additional 10% tax
    – you can calculate yourself from the Form 16A provided by your bank and pay it using below link
    https://www.tin-nsdl.com/e-pay-furnish/e-payment.php
    – You have already crossed the deadline, but you can still pay it along with the interest (for the tax on your interest income)
    – If you are e-filing, you should declare the interest income as “1b Income other than from owning race horse(s):- Interest, Gross” in CG-OS spreadsheet
    – If you are going to get help from tax advisor for filing the returns, they know how to do it

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