Income Tax Department Alert: Fixed Deposit Interest Of Over Rs.5 Lakh Can Invite Problems
It seems the government is leaving no stone unturned in its effort to make the tax net more wide in the county. According to a recent TOI report, those who earn more than Rs.5 lakhs from their fixed deposits would come under the radar of income tax authorities. The income tax department is all set to closely monitor their bank accounts and will investigate those who are not paying taxes even after having huge amounts in their fixed deposits.
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Even the accounts of senior citizens whose income from interest on fixed deposits is not considered in their taxable income or do not file tax returns at all will also be monitored as per senior officers in the Central Board of Direct Taxes (CBDT).
The tax authorities have started paying more attention to the fixed deposits because there are many professionals who deal in huge amounts of cash and enjoy a lavish lifestyle, but not always file income tax returns.
The Income Tax Department will be relying on banks to give them information related to such accounts. According to the report, they also has a substantial amount of data acquired from different agencies to hunt for those people who are deliberately avoiding the tax net.
The main focus will be on big frauds. “Our primary focus is on the big evaders. Small time cases and persons will be not chased as they do not yield much returns”, as per a senior officer.
Prime Minister Narendra Modi-led government since the very beginning has been very much attention to the need of expansion of the tax net for such frauds. There have been reports which says that the Income Tax authorities are expected to raise approximately Rs.9.8 lakh crores from the direct taxes in the current financial year.
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Good move.
What about doctors, lawyers, auditors and business people.
It will be difficult to the person who receive interest by submitting 15 G form if they are submitting ITR.
Why worry when any one pay tax as per his income?
Bank always deducts tax from fixed deposit interest as TDs.
No I donot agree. Most of the people hide such interest income assuming with TDS deducted at source discharges the responsibility of counting the interest income under taxable head.
What is new?Senior citizen are the worst sufferer They are solely dependant on FD interest and paying taxes honestly.but with lowering of bank rate living has become difficult now .only thing is that now they have to less tax as income itself will reduce.The real tax evaders professionals or business will always remain evaders.
Really the senior citizens are sufferers as they have deposited their their life time earnings as FD. But interest rates have dwindled. Also TDS is done in advance to be claimed as refund later !
Life is becoming tougher in-spite of their pre-planning of their life. Very unfortunate !
It has become more difficult to run life for some Senior Citizens who only depends upon the interest income from the Fixed Deposit who does not have pension as the interest rate has been cut down on FD. Will be no problem above 5 lacs if taxes given properly.
What if your interest income goes beyond tax exempted annual income!! So I don’t think only TDS is target if deducted so one is free.
Definitely this needs to be adequately looked into.
Good initiative. No worry for people paying tax honestly.
Is the interest on Fixed Deposits exempt from IT for senior citizens ?
No.
There is a limit of Income beyond which everybody has to pay Tax.
Thera are concessions/rebates on such income but not the Interest as such.
Actually no need. Just deduct TDS for all cases where interest more than 10000 and refund if eligible after ITR filling.
This will be become another big madness. If you are saying that a senior citizen getting 2- 3 lakh interest per year on his life earning, has to file ITR for refund, I wish you should reach that age soon without any other income, to realize the MADNESS YOU ARE ASKING FOR?
This they are already doing. The Bankers should be held responsible for this TDS of 10% . I know many bank employees esp. in UP & Bihar who are unaware of this responsibility and do not deduct TDS . Such bank employees when caught should as penalty be asked to pay double the amount from their pay and added to that their annual increment of next year also should be cancelled. Now such chances however, are less as in computerized banks the system will automatically do TDS without human need. Secondly, if it is found that the assesse has given wrong entry about FDs interest in his ITR then also double the due amount should be charged and all due refund if any to him for that year should be confiscated. Fixing the responsibility is must in this way to improve financial behavior of people.
What about the people like doctors, lawyers, businessmen et al who avoid banking system – what is the plan to catch them? You can see, if you are observant, that while paying against big purchases of monthly needs, designer dresses etc. in malls & big shops, some people are paying in cash but others are paying through cards. Not that they are all suspects but some cultivation needs to be made.
I’ll cooked proposal in case it is. Most of the retired person who got good retirement benefits, put their earning in fixed deposit. In most of the case it is over 5 lac. All Banks deduct TDS on deposits other than saving bank accounts. To recover their money, invariably file IT return.
Good initiative from our government. Really appreciate your every effort to make India a better place to live in.
The Government has everything with it.
The moment you go for FD in any bank or a company, it asks for PAN and the govt can easily link income from any source on PAN in its own.
It has the details.
No need to publicize this.
Start taking action.
Why to advertise?
Good initiative. Can we also have a mechanism where
1. corruption is traced and culprits are put behind the bars.
2. Crimnals are not allowed to represent govt and stand in any sort of election.
3. People get good roads, water and health benefits requirements.
4. Illegal toll nakas are abolished.
5. Reservation system is removed.
6. Strict action is taken against rapists and murderers.
Remove and annihilate caste system in Hindu. Let A Schedule caste SC and one of all temple. Why only Brahmin perform all rituals OMG Hindu . Let all sc St and obc do all. Why these have been reserve to Brahmins. Let first remove this reservation.
Reservation is main problem..sc were not able to study inspite of the various free education schemes. I doubt how they perform rituals by themselves…they want reservation in education as well as job….free chapatis that too with butter chicken…
What about senior citizens,has government thought for them. Those are not drawing pension what will happen to them because whenever their life servings they put in F.D. It is predicted by 2020 rate of interest will be only 4%& by 2040 it will be 0%.What will be their fate then.Request government urgently do something for them,Thanks.
because the sc & st candiates having more reservation in everything. but others are not .one of all remove the reservation for sc & st candiates
Why reservetion for sc/st IAS AND IPS Officers children once they got every facility from govt give it poor other sc/st children to comeup then only the country will come out withthis problem
Remove and annihilate caste system in Hindu. Let A Schedule caste SC and one of all temple. Why only Brahmin perform all rituals OMG Hindu . Let all sc St and obc do all. Why these have been reserve to Brahmins. Let first remove this reservation.
Good idea. As in other cases, qualification counts, those qualified to do ‘Brahmin job’ should also be allowed. There are institutions which provide education in this field.
Mr. Chandrasekhar, I being a Brahmin myself, I do hate cast system which is still thriving in our Hindu Society, believed to be one of the oldest religion on earth. Unfortunately, many reformed took place in the past 1000 years or more but our fundamentalist religious approach(untouchability especially) did not change at all. So called Brahmins still believe they are supreme religious leader and all temples are headed /controlled by them by virtue of their caste, where non brahmins are still not allowed to perform the role of priest. Everybody should be equal and have equal right in our religion be it a priest or whatever similar to the Christian community, they may have different divisions but not the stupid Cast System like we possess. I thank you for writing or so to say, unmasking our social stigma of cast system which we are still carrying. Thanks Cheers. Samir Mukherjee
Job of priest can not be for asking through quota. Govt. can not run on itself religious places. These are governed by Trusts. Akshardham cult has no Brahmin priest. In fact their movement was basically against this tradition. Another example is Dhamma-parvertan centre of Buddhist in Nagpur. Their rituals are done by their own people and not by Brahmins. What more do you want ? Everyone is free as individual and also on community level to raise any number of temples and run it by their own people. Its a matter of personal faith and can not be governed by reservation or quota. Most of these Brahmin priests are sanskari and have been devoted to the job from their childhood with knowledge imbibed from that early age in parampara system. We are seeing enough of non-Brahmin people in this line in the form of Asharam , Ramlal , Ram Rahim etc.
Quota system has already taken its toll on service sector where most of these quota selections are incompetent and even not aware of the responsibility attached to the chair they occupy . However , the said matter does not apply to exceptions in all communities whether Brahmin or non-Brahmins.
govt. must take care of societies, trusts, ngo’s and their associates specially institutes. They earn in crores not only from interest but also from receipts of fees from students. many of them run two three societies. some of them run societies from their residences and residence is also treated as office of society. These people don’t pay any income tax and also take refund of TDS deducted by bank on FD’s. They also invest in funds and pay no tax. They also put all personal expenses of all kind in books.
Many of them are running coaching institutes without paying any service tax also.
The Modi led Govt. is doing its best for the people. It is taking bold steps which no other govt. dare do. But extracting tax from retired employees is a step to be considered. Not all pensioners are well placed. The pension earnings are a must to take care of their health and maintanence, which is barely sufficient in most cases. Therefore the govt. should consider increasing tax limits for pensioners. I do not want them to be exempt from income tax, but only increase their tax limits.
This Government looks completely confused and playing to the galleries. Don’t you know that any amount deposited in bank attract Tax and bank deduct it. Now one very important question you are collecting money in the name of tax but just see how govt spending money and delivery system. All Govt fails in every field, see the condition of Govt schools, Govt. Airlines, Railways, Hospitals. No Accountability for political funds. People pay tax for improvement of services ,not just for hefty salary and parks for govt officials . Every govt organisation are runing on contract people . Crores of Tax money is spend on Indian air lines for what, for more loss. Govt can not run any organization their own. This is happening all over country from 1947 and deteriorating day by day. How many govt official checking and improving these facilities . Just collection of money is not the solution. How you will put this tax money to good cause is important.
Very true Mr. S Singh. No one talks about the tax money being put to proper use. Modi alone cannot achieve much. The whole political system and the Govt. departments are run by corrupt people and the situation has not improved but become worse even after Modi took over. Unless there is transparency in all Govt. dealings things will never improve.
Good idea . There are people like me, who had taken to take VRS from the Public sector for NO fault of ours. Today I am getting a pension of Rs1106/ PM under EPS after working for more the 15 years in it.Now I am 58 years of age.See how can I survive with this meager income.Or this country expect their old men to work like donkey till you die.
I think govt(IT Deptt) should take into accounts of Doctors; C.A; Advocates ; Business man & Landords whose earnings are not being monitored.why? IT deptt.considering FD Intt. Of senior citizen in Banks .because it is on records of banks.although banks r deducting TDS 10% on it. IT deptt. is ok .must file IT return to pay actual tax no doubt but what about those people who is earning without any records ie Doctors; CA; Advocates; Lanlords( getting rental huge income monthly)etc.Separate assesment must be done by IT deptt. for these professionals etc.who is not giving actual incomes to IT deptt.It is true and known to all.pl seriously think over it.Why only IT deptt.is thinking for senior citizen FD Intt.at least TDS being given 10% where as CA ; Advocates ; Lanlords ; Doctors etc not paying actual Income taxes.where is the lapses?
It is seen that companies become loss making. But. it’s promoters,owners are becoming richer and richer .Amazing!
This post has no meaning . Govt has well planned system in place for taxation of Sr. Citizen. Every Sr Citizen is paying as per their income. This post is only to create a panic or has other motive.
Of course the post is confusing. The banks already deduct tax @10% on all fixed deposits of PAN holders and 20% in other cases. So the amount of 5lacs mentioned here has no meaning.
No I donot agree. Most of the people hide such interest income assuming with TDS deducted at source discharges the responsibility of counting the interest income under taxable head.
Don’t understand your clarification.
Income of private professionals need to be brought in tax net. There are many those are earning in lacs but not paying any tax and if they are paying, they are paying according to their own will.
This govt is no different from other govts.All are behind the people who genuinely pay tax. Let Modi go and ask Adani and Ambani to clear their tax or else face consequences. He do not have guts to do that.
This Modi lead BJP government is one of the worst one after independence they are after the middle class leaving the rich to enjoy and loot the common man the increase in petroleum products rates and also the rising prices making the people suffer very day . Government including Mr Modi enjoying their life at the cost of common man taxes . There is no control on government expenditure.
Mody has no work he is tagging everything with adhar and on day we need adhar even for purchase a train ticket or one kg of rice
Mody is trying to tag adhar with everything.One day we may need adhar even to purchase abottle of beslieri water or one kg rice
It is a good move. Try to understand. Think of the society as a whole. And also this is the way how the undisclosed income will come into the system.
Even Aadharv should be the basis for voting. No need for separate voting card or PAN
The BJP government has caused more than 1.5 lakh crores loss to the nation by its wrong decision of demonitisation in spite of caution from economists. Now it runs after few crores that too from taxpayers.How many politicians honestly declare their income and pay taxes?
ACHHE DIN FOR THE SENIOR CITIZENS?
ACHH DIN FOR THE SENIOR CITIZENS?
Ok. Bank deducting only 10 %. But if u falls under 20% bracket it is whose responsibility to pay the difference.
What is so great about this news. Every one needs to pay taxes as per their income derived from various sources by promptly filling the returns every year and get refund in case you have paid excess tax! Let us not crib and crawl ! Don’t bother what others are doing ! If each of us focus on our duties and responsibilities towards our family and nation at large by paying taxes every thing will be fine!!
What is so great ? Every one needs to pay taxes and file returns to get refunds if necessary! Let us stop preaching what others should do! Let us do what needs to be done as a dutiful citizen and exercise our rights without fail!
I want to introduce THE GREAT MODI PRIZE to THE INDIANS & REST OF THE WORLD. It will be given to who will take stupid actions and ideas.
And want to give this first to MODI & TEAM for implementing stupid ideas like currency notes ban and taking stupid actions on middle class persons and not taking any actions for illegal business persons.
Good move. Good initiative.
Good move & Good initiative.
Not a good move,there is no medical or financial help to a senior citizen who has paid taxes honestly all his life and now has to depend on the interest of his life savings for his survival.He has probably exhausted his savings on bringing up his children and purchasing a house if he is an honest person. He has nowhere to go as in most cases children do no look after their parents.what is he supposed to do.Plesse think before commenting.
Good move but take action against like doctors,lawyers.CAs
Bank ask for PAN and are required to deduct 20% tax on interest if it exceeds more than Rs10000 per annum if the deposited fail to provide the same . If the depositer submit the PAN than the deduction is 10% provided if they have not submitted 15 G Or 15H. ALL bank has to report to IT the amount of interest paid and tax deducted and such tax deposited with IT department under each PAN . The Bank will issue form 16 and interest income certificate to depositer. The deduction of TDS SHOULD BE MADE COMPUSORY THROUGH A SOFTWARE SO THAT WHETHER the bank employee is were of the tax provision is immaterial .if you submit the form 15 H Or 15G to any bank to be centralised with one code and it is to be reflected under PAN in the 26 AS so that no body can escape from paying the tax or avoid filing the return . In case of refund the depositer has to file the return to claim the same .
It will be convenient for the Senior Citizens if TDS on FD interest income up to 4.5 lacs is not done ( 3.0 Lacs exempted amount + 1.5 Lacs amount which may be tax savings, because a Senior Citizen may not have sufficient money for
tax savings if amount is already deducted as TDS). TDS may be done by the bank above the amount 4.5 Lacs only as per tax rule. It will be a relief for the Senior Citizen.
The honest will always be honest in paying their tax dues. The govt should concentrate on those dishonest people.
We assume that all IT ED and other tax officials have become honest overnight. These are the people who are more responsible for black money. An ordinary citizen knew who evade taxes. They knew all. Now they raid some people they knew already were evaders, news help government to highlight achievement, and later adjustments can be done by officials and politicians. Now even political donations have been made secrets by law. Who gives whom what and why no body will know. This is another fact of life. Economic parameters ultimately govern the performance.
Serch have been conducted at my house and office on 23/24jan although I am paying tax approx 1 corores yearly from my three firms from last five years but I request to it officers way are you not looking on people doing same business in Khandwa in spite of turnover more then me and their rates are more then my rates in spite of all this they are paying only 10% tax compare to me what is this can department have any answer
Firstly all the MP, S and MLA, S income should be made taxable. They only make the rules by not paying taxes and enjoying with our money.
Is desh me kanoon kewal sharif or imandar logon ko hi pakarta hai jo log apni income ko show hi nahi kartey unka kuch bhi nahi hota jaisey example hai ki logon ne apney kai
makan bana rakhey hain or rent per de rakhey hain jiska koi hisaab nahi, businessmen bina bill ke goods bechte hain or koi tax nahi detey news me batya tha ki saari bari markets me tax ki chori ho rahi hai govt kuch nahi kar sakti , chotey se makan me 4 anganwari ke board laga rakhey hai charo ka rent or char jagah bachhon ke liye khana aata hai jabki bachhe 10 bhi nahi hain inspector bhi aatey hai inspection kartey hain maal khatey hai or aankh band karkey chaley jaatey hain , sarak or patriyon per pehley policewale encroachment karwate hain or fir yahi kartey hain jo do number ki kamai hoti hai us per bhi koi tax nahi diya jata , doctor ,advocate,ca jinki fees itni hoti hai kya sabhi tax detey hai main to kahoonga nahi, school teacher school me to padate nahi or tution kartey hai jiski incom se apney ghar ka kharcha chalate hain ve bhi koi tax nahi detey, kai log leader bantey hai or illegal jamino per kabja kar phayda uthate hain ,aisey or bhi example hain jinko dekh ker dil me dard hota hai or sochta hoon ki desh me kaisey sudhar hoga kewal hum jaisey log jo imandaari se apni income ke ek ek paise per tex detey hain or moj ve log kartey hain jo chori kartey hain kyonki unhey bhi vo saari facilities milti hain jo hamey milti hai , kya income tax waley or govt pradhanmantri ji,finance minister ji in baaton per dhyan dengey jissey desh imandaar logon ko paida karey