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Do you have to pay taxes on interest income?
Yes you do if it is taxable interest. All of the interest that is received is reported on your 1040 tax form. The tax exempt interest is not subject to income tax but has to be reported on your 1040 income tax return as exempt interest.
What is the difference between income tax and service tax?
Income tax is the tax that is charged to your income that can be paid with the preparation of tax forms or is withheld from your paycheck. Service tax refers to the tax that is charged for services, like care repair.
Do you need to pay income tax on interest earned on fix deposit even tds deducted by bank already?
Yes all interest income is reported on the income tax return. tds (Tax Deducted at Source). At present NO interest income is exempted from tax .On the federal 1040 income tax return you do have some types of interest that is exempt from income tax but the amount still has to be reported on the 1040 federal income tax return..
Is borrowed money taxable?
Money that is borrowed is not taxable. If you borrow it and don't pay it back, it can be classified as income and be subject to income tax. If you borrow money and are not being charged interest, the government will consider the cost of interest to be income that is taxed.
What is gross interest income?
It is income on interest (from savings) that has not been subject to tax
What is the differences between VAT and income tax?
VAT is value added tax charge on sale and purchase. Income tax is tax charged on income received.
How much taxes do you pay on the interest from a 12 month CD?
If your federal marginal income tax rate is 15 % and you have 1000 of interest income for the year on the 12 month CD the federal income tax amount would be 150 of federal income tax on the 1000 of interest income.
What is the process by which money makes more and that money makes more?
This is compound interest. The problem is inflation and income taxes. Lets say you were getting 4% interest and inflation is running at 3%. If you got $1000 in interest after the loss in value of your principle you true interest is only $250, but the income tax in not based on that. You are charged interest on $1000. At 28% your tax would be $280. As you can see with a $280 tax on $250 you are getting ripped off.
Whether interest on service tax allowed for income tax or not?
It is allowed
What is the journal entry if i received 10000 as a interest income and 10 percent percent advance income tax paid?
debit cash 9000debit tax 1000credit interest income 10000
If the state and federal government owes me money do my forms need completed by April 15th?
They are supposed to be filed by April 15 2010. If you are due a refund you will not be charged the penalty and interest that would be due if you had a income tax liability on your income tax return for failing to meet the April 15 due date of the income tax return.
Most of the bank income comes from charged on loans?
interest
