Finding bank charges, interest and TDS in a statement for ITR

1. Interest credited by the bank

Savings-account and fixed-deposit interest is taxable and has to be reported even when the bank deducted nothing. The credits are small and easy to miss because they usually fall on a quarter end.

What it looks like on the statement

• "CREDIT INTEREST CAPITALISED", "INT.PD", "SB INT" — savings interest, typically on 31 March, 30 June, 30 September, 31 December.
• "INT ON FD", "TERM DEPOSIT INTEREST", "RD INTEREST" — deposit interest.
• "INTEREST ON SAVINGS BANK ACCOUNT" spelt out in full on some public-sector bank statements.

Where it goes

Interest income is reported under Income from Other Sources — Schedule OS in the return, with savings and deposit interest normally shown on separate lines. A deduction for savings-account interest may be available under section 80TTA (or 80TTB for senior citizens, which also covers deposit interest), subject to the limits and the regime rules applicable for that year. Fixed-deposit interest is taxable in full for most taxpayers under 80TTA.

The mismatch trap

Banks report interest on an accrual basis for a financial year, while your statement shows what was credited on a date. For an FD that matures across 31 March, the two figures differ legitimately. Always reconcile against Form 26AS and the AIS rather than assuming the statement total is final.

2. TDS deducted by the bank

When deposit interest crosses the applicable threshold, the bank deducts tax and remits it in your PAN. That is money already paid on your behalf, so claiming it reduces the tax you owe — and missing it means overpaying.

What it looks like

• "TDS ON FD", "TDS RECOVERED", "TAX DEDUCTED AT SOURCE" — a small debit right after an interest credit.
• Sometimes lettered with a quarter reference, e.g. "TDS Q3 FY25-26".
• "194A" occasionally appears in the narration — the section for interest other than on securities.

Where it goes

Into Schedule TDS of the return, as credit for tax already deducted. The authoritative figure is the one in Form 26AS, not the one in your statement — if they differ, ask the bank to correct its TDS return, because the return will only give credit for what is reported against your PAN. Note that the interest goes in as gross income: report the full interest credited and claim the TDS separately, never the net amount.

3. Bank charges and the GST on them

For a business or profession, bank charges are a deductible expense and the GST on them is usually an input tax credit. They are individually tiny and collectively significant.

What it looks like

• "SMS CHARGES", "ATM CHARGES", "DEBIT CARD AMC", "ANNUAL MAINTENANCE"
• "NEFT CHARGES", "RTGS CHARGES", "IMPS CHARGES", "CHEQUE RETURN CHARGES"
• "MIN BAL CHARGES", "NON MAINTENANCE CHARGES", "LOCKER RENT"
• "GST", "CGST", "SGST", "IGST" — sometimes as a separate debit immediately after, sometimes bundled into the charge itself.

Where it goes

Bank charges to an indirect expense head in your books, and into the business expense schedule of the return. Where GST is shown separately, book it to the input tax ledger rather than to expenses, so the credit is claimable — the bank's GST is reflected in your GSTR-2B and should be reconciled against it. For a salaried taxpayer with no business income, personal bank charges are simply not deductible.

4. Cash deposited and withdrawn

Cash movements are not income or expense at all, but they matter for two reasons: they must be booked as Contra entries rather than as expenses, and large cash activity attracts reporting.

What it looks like

• "CASH DEP", "CDM CASH DEPOSIT", "BY CASH", "CASH DEPOSIT MACHINE"
• "ATW", "NWD", "ATM WDL", "SELF CHQ", "CASH WITHDRAWAL"

Why to total them separately

• Banks file a Statement of Financial Transactions for aggregate cash deposits above prescribed limits, and those appear in your AIS — so your own total should agree with it.
• Section 194N requires banks to deduct tax on cash withdrawals beyond prescribed aggregate limits during a year. Knowing your running total in advance avoids the surprise.
• Heavy cash activity relative to declared turnover is a common trigger for scrutiny, so it is worth knowing the number before filing rather than after a notice.

The specific limits change from year to year and differ by account type. Treat any figure the tool highlights as a prompt to check the current rule, not as a conclusion.

5. The other figures worth pulling out

• Interest paid on an overdraft, cash credit or term loan — deductible for a business, and for a housing loan relevant to the property schedule. Look for "INT COLL", "LOAN INTEREST", "OD INTEREST".
• EMI debits — each EMI splits into principal and interest, and only the interest is an expense. The split comes from the lender's amortisation statement, not from the bank statement.
• Salary and statutory payments — salary debits, and PF, ESI, TDS and GST challan payments. These reconcile against your payroll and return filings.
• Dividends and mutual-fund credits — taxable in your hands and reportable, with their own TDS.

Doing it quickly

1. Convert the statement for the full financial year — 1 April to 31 March — in one go. Interest hides at quarter ends, so a part-year statement will miss some.
2. Open the converter and use the ITR filing details panel on the review screen. It totals interest received, TDS deducted, bank charges with GST, interest paid and cash deposited or withdrawn, with the entry count behind each figure.
3. Or do it in Excel: convert to a spreadsheet, then use SUMIF with a wildcard on the narration column, e.g. =SUMIF(B:B,"*TDS*",D:D). Build one line per keyword from the lists above.
4. Cross-check every figure against Form 26AS and the AIS before it goes into the return, and keep the statement PDF with your working papers.

Related reading

To get the statement into a sheet in the first place, see converting a bank statement PDF to Excel. To book the same statement as vouchers, see importing a bank statement into TallyPrime.