India Income Tax: Need to Pay Tax on Savings Account Interest for FY 2012-13 Or Not?
As per Indian Income Tax rules and regulations, for the Savings Account Interest accrued during the period of April 2012 to March 2013, do I need to pay any tax if it is less than Rs.10000? Or is it going to get covered under the section 80TTA?
Please help by providing me with clarification for this if possible with some reference to official documents.
If I need to pay tax on the same, do I need to pay any fine with the same, if I am paying it before 31 July 2013?
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Any interest [even Rs 1] received to from Savings Bank is taxable [provided you total income including interest is taxable].
If the Amount of Interest is less than Rs 10,000/- Bank need not deduct tax at source. This does not mean you are not liable to pay tax.
If you total income is less than Rs 5,00,000 and interest income less than Rs 10,000; you can indicate you savings interest to your employer who would deduct tax and you need not file any return.
Refer to incometaxindia.gov.in/Archive/Taxation_Of_Salaried_Employees_18062012.pdf
If the total tax obligation that is not paid by 15th March is less than Rs 10,000 you can pay the tax online without any penalty as "Self Assessment Tax" upto 31-July. tin.tin.nsdl.com/etax/Index.html
There is / was a proposal to exempt Interest from Savings Account [and not from Fixed Deposits or Recurring Deposits] upto Rs 10,000. This is applicable from 1-Apr-2013 and would be for current financial year. www.taxmann.com/taxmannflashes/BUD12-70g.htm
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