Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 ITR Filing: 6 Ways to Get Exemption on Income Tax
 Income Tax Return Filing: 10 Mistakes To Avoid When Filing ITR For AY 2024-25
 Old vs New Tax Regime: Who should move to the New Tax Regime from the old one?
 Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?
 BackBack Income Tax Act amendment on cards on tax treatment of MSME dues
 ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here
 Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime
 How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)
 Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning
 What Are 5 Heads Of Income Tax?
 Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals

Ensure that your TDS reaches the income-tax department
September, 09th 2014

Recently, a senior citizen received a notice from the Income Tax Department, asking her to pay Rs 30,000, the tax on her bank fixed deposits for assessment year 2013-14, along with interest, for late payment of tax. She was surprised, as her bank had deducted the tax at source (TDS).

What had happened was the bank had deducted TDS after the end of the financial year, owing to which she didn’t get the tax credit for the previous year.

There are several instances of taxpayers getting notices from the I-T department for no fault of theirs. Notices might be sent if TDS hasn’t been deducted, or if the TDS has been deducted but not paid to the I-T department on time.

If a bank doesn’t deduct TDS on fixed deposits, or does this after the end of the financial year, the onus is on the taxpayer to show he/she doesn’t intend to avoid tax, that it was merely an error. One of the ways to go about this is showing the interest income while filing tax returns and paying taxes. In case this isn’t done, you could file a revised return. But ensure you revise the tax return before the end of the next assessment year, says Rakesh Nangia, of Nangia and Company, chartered accountants.

However, if the interest income is being declared on a cash basis, the assessee can carry forward the TDS by the bank and clam credit in the year in which the income is taxed. In case the fixed deposit is for five years, you could carry forward the TDS and pay it in the last year, when it matures.

If your bank deducts and pays the tax later and you, too, do this (while following an accrual basis), you could claim the tax paid twice by filing a revised return. This process, however, might take time, says Nangia. You will have to take up the matter with the assessing officer of your ward and explain to him the details of your case.

Also, if you change jobs in the middle of a year and the previous employer deducts tax but doesn’t pay this to the I-T department, you might get a tax notice. In this case, too, one must show the income while filing ITR-V and take up the matter with the tax officer.

The sale of a property worth at least Rs 50 lakh involves TDS of one per cent. For such sales, it is the buyer’s responsibility to pay the TDS; also, it is mandatory to do this online. Only then will the seller be able to claim credit for such TDS. Otherwise, the seller could end up paying a huge interest and penalty, Nangia says.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting