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Queries about fds

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Querist : Anonymous

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Querist : Anonymous (Querist)
16 September 2014 Dear Team,
I have queries about FDs.

I have invested some amount in Bank FD for 5 years.

I want to know if at the end of 5 years I need to declare it under the head - "Income from Other Sources" or how is it? Can I declare it every year?

Say I have invested Rs.50,000. The maturity amount will be somewhere around Rs.75,000, which is Rs. 5000/- every year, for 5 years.

How should I declare this amount in IT-returns? As 50,000 or only the interest amount?

One more point is, if I renew after 5 years period, how should I declare it?

Regards,

16 September 2014 1. interest would be accounted under "income from other sources"

2. you can offer interest earned every year to tax on accrual basis.

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Querist : Anonymous

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Querist : Anonymous (Querist)
17 September 2014 Did not get you Please..




18 September 2014 interest income is taxable as income from other sources

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Querist : Anonymous

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Querist : Anonymous (Querist)
18 September 2014 So, can i declare the whole amount at the end of 5 years? or every year?

18 September 2014 IF U ARE REC IT EVERY YEAR THEN SHOW IT YEARWISE OR ELSE AT THE END OF 5TH YEAR

18 September 2014 always prefer to offer it on accrual basis every year. Bank will also deduct TDS every year on accrued interest.

offering on receipt basis will load up the tax liability to the final year causing unnecessary burden

18 September 2014 always prefer to offer it on accrual basis every year. Bank will also deduct TDS every year on accrued interest.

offering on receipt basis will load up the tax liability to the final year causing unnecessary burden




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Querist : Anonymous

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20 September 2014 my bank is not deducting TDS

20 September 2014 ok. you still can offer on accrual basis.

For eg if you have Rs 1 lakh FD at 10% interest. Then offer Rs 10000 interest every year for taxation. This would help you to spread tax liability over years.

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 September 2014 I have already e-field my return and should send the form through post to cpc, Bangalore.

I have not filled any of the details below in my returns, as I was unaware of it.

My 5-year fd details are below:

1. In July 2012, deposited 50,000
Maturity date: July 2017, amt: 79,955

2. October 2013, deposited 50,000
Maturity date: Oct 2018, amt: 77,077

3. January 2014, deposited 10,000
Maturity date: Jan 2019, amt: 15,415

4. March 2014, deposited 45,000
Maturity date: Sep 2014, amt: 46,986

5. April 2014, deposited 50,000
Maturity date: April 2019, amt: 76,140

Could anyone help me, what should be my next step.


20 September 2014 you can revise the return if you wish to. compute the interest upto 31 March 2014 and include it as income from other sources.






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