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 the earnings from 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 do not show the earnings from FD interest in ITR. . Due to this small mistake, the tax department is sending notice to the taxpayers.
Do this to avoid notice
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 in ITR. Actually, there are two options in the ITR to give the details of the earnings from interest. Taxpayers can show their interest income in the year of receipt in the ITR along with the year of accrual. 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 are deducted from 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 there will be no violation of the rules of the tax department. 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.