Tax on FD and late payment

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 .

asked Jul 25 '12 at 23:07 by Mukesh 1112

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

answered Jul 26 '12 at 16:59 by Pankaj Batra 5.2k320

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
(Jul 26 '12 at 21:12) CA Karan Batra
@Karan Its not correct. Even ITR excel file calculates interest penalty only if pending tax payable after 31st March is more than 10k.
(Jul 26 '12 at 21:23) Pankaj Batra
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).
(Jul 27 '12 at 10:00) Mukesh
Select challan type as CHALLAN NO. /ITNS 280 and continue. Select (0021) INCOME-TAX (OTHER THAN COMPANIES) in tax applicable field and Select (300) SELF ASSESSMENT TAX in type of payment.
(Jul 27 '12 at 10:02) Pankaj Batra
Dear Pankaj, Is this answer valid for Financial year 2012-2013 also ? i.e. interest on FD and need to pay more tax.
(May 07 '13 at 18:49) Mukesh
Yes, answer is valid for FY 2012-13 as well.
(May 08 '13 at 01:10) Pankaj Batra
showing 5 of 6 show all

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

answered Jul 25 '12 at 23:39 by CA Karan Batra 53216


Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text]( "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported



Asked: Jul 25 '12 at 23:07

Seen: 4,855 times

Last updated: May 08 '13 at 01:10