Tax on FD and late payment

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Hi, I have FD interest in Financial yr 2011-2012. Bank deducted on 10% rate while I come under 20% slab. As per the amount in form 26AS on incometax site, I need to pay more Rs 6178 (5988 tax + 180 cess) without considering any penalty. As it is already july do I need to consider any penalty also. please suggest .

2 Answers

As pending income tax is less than Rs 10000, no interest would be payable as penalty u/s 234B and 234C.

As far as I know, Interest is chargeable if the Total Tax Liability before deduction of TDS is more than Rs. 10,000 which is also the case in the above query

@Karan Its not correct. Even ITR excel file calculates interest penalty only if pending tax payable after 31st March is more than 10k.

Thanks Pankaj. You are correct on this. I also checked in the excel ,it shows interest only when tax payable crosses 10k. I need to pay balance tax+cess. But is the challan 280 correct challan to fill or there is any other challan for this (Income from FD interest).

Hi Mukesh

You would be liable to pay tax along with Interest at the time of filing your Income Tax Return.

Tax under Section 234B & 234C would be leviable on late payment of tax. In case you are using the Excel utility for efiling your Income Tax Return, the excel utility will automatically calculate the Interest payable by you on late payment

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