Income Tax Notice: In the last few months, taxpayers have been receiving notices from the Income Tax Department. Notices have been issued to people who pay taxes through the Income Tax Department message and email.
New Delhi. In the last few months, taxpayers have been receiving notices from the Income Tax Department. Notices have been issued to people who pay taxes through the Income Tax Department message and email. These notices are being sent because the details of interest earned by the tax department are not matching with the income tax return (ITR) of the taxpayers.
Small mistake will be expensive.
Actually, the interest on fixed deposits made in the bank is fully taxable, but people often forget this while filing income tax return (ITR) and the ITR earned from FD interest. I do not show. Due to this small mistake, the tax department is sending notice to the taxpayers.
If you want to avoid the notice of the Income Tax Department, then give information about the interest received on Bank FD in ITR to Tax Vibag, but you should know how to give details of it in ITR. Actually, there are two options available in ITR to give the details of earnings from interest. Taxpayers can show their interest income in ITR with year of accrual in the year of receipt. That is, you can give the details of interest every year or even the year when you get the return of FD, but tax experts suggest that the interest received on FD should be shown in the year of accrual.
TDS is deducted
on behalf of the bank. TDS is also deducted on behalf of the bank for every year interest, which can be shown in ITR Form 26AS. This will not make any difference in the figures of TDS and Annual Interest and the rules of the tax department. There will also be no violation. If your income is less than the cleared limit, then you do not have to pay TDS on the interest received. Banks deduct TDS at the rate of 10 percent.
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