Don't make this mistake if you have FD in the bank
Don't make this mistake if you have FD in the bank As the Income Tax Department is sending a notice If you have FD in the bank, do not make this mistake, as the Income Tax Department is sending notices. Taxpayers have been issued notices through Income Tax Department messages and e-mails. Income Tax Department is issuing notices to tax payers
This does not match the income tax return of the taxpayers
A small mistake can cost you dearly. This does not match the taxpayer's income tax return.In the last few months, taxpayers have been receiving a flurry of notices from the Income Tax Department. Taxpayers have been issued notices through Income Tax Department messages and e-mails. That is why these notices are being sent. This is because the details of interest earned by the tax department do not match the income tax returns of the taxpayers.
A small mistake can be costly
In fact, the interest earned on a fixed deposit with a bank is fully taxable. But when filing income tax returns, people often forget this and do not show the earnings from FD interest in ITR. The tax department is sending a notice to the taxpayers because of this small error.
Do this to avoid notice
If you want to avoid this income tax notice, inform the tax department about the interest received on the bank FD in the ITR. But you should know how to give this description in ITR. In fact, there are 2 options in ITR to give details of earnings from interest. Taxpayer can show his interest income in ITR along with Year of Actual in Year of Receipt. This means you can pay interest every year or even in the year when you get the FD back. But the tax expert advises to show the interest earned on FDs in the actual year.
TDS is deducted from the bank
TDS is also deducted from the bank on interest every year. Which can be shown in ITR Form 26AS. This will not make any difference in the figures of TDS and annual interest and will not violate the rules of the tax department. If your income is less than the adjusted limit, you do not have to pay TDS on the interest earned. The bank deducts TDS at the rate of 10 per cent.
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