Interest From Fixed Deposits, Savings Accounts, Nsc is Fully Taxable

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o All incomes need to be reported, whether exempt from income tax or not.
o Interest earned on bank accounts (savings and FD) are generally not reported due to misconception. Interest income, including accrued interest on NSC is taxable.
o Money received due to compulsory acquisition of land is also taxable. Even the rent received from cell phone tower on roof of your house is taxable.
o Long term Capital gain on stocks and mutual fund is not taxable, but still needs to be reported under exempt income in ITR2.
o Basically, you need to report ALL income
o TDS is deducted on your estimated income at rates specified by income tax. However, your actual income may be higher or lower. Therefore, you have to compute your tax liability at the end of the financial year. Depending on your income and TDS deducted, you may have to pay more taxes or may be eligible for refund.
o Do not forget to mention bank details in your ITR, in case you have refund due from income tax.
• Permanent Account Number (PAN)
Permanent Account Number (PAN) is a ten- digit alphanumeric number, issued in the form of a laminated card, by the Income Tax department. Key points to remember about PAN are:
o It is mandatory to have PAN number in order to file your income tax return.
o Having PAN number does not necessarily require you to file return. You are required to file return only if your gross total income is above the exemption limit.
o PAN number is required to be quoted if you make transactions like:
? sale/purchase of immovable property valued at Rs. 5 lakh or above
? sale/purchase of car for any amount
? time deposit exceeding Rs. 50,000
? sale/purchase of security (such as shares, mutual funds) exceeding Rs. 1 lakh
? application for phone connection
? payment in cash for bank draft or pay order exceeding Rs. 50,000 in a day
o Incorrectly quoting a PAN will make you liable for penalty of Rs. 10,000.
o PAN is your personal identity, don't disclose it unless required. Keep a laminated photocopy of PAN card for use & keep the original PAN card at a secure place.
www.taxspanner.com

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Source by Maria Rain

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