accounting in cash basis
This query is : Resolved
Ravi Kumar Rajgaria
(Querist)
10 August 2010
We prepare our accounts in cash basis.So no any provisional entry is passed.
As on 31st March bank deduct TDS on accrued interest on FD but we do not treat accurued interest as income in F. Y. 2009-2010.
What will be the accounting treatment and in which F. Y. interest will be taxable?
As on 31st March bank deduct TDS on accrued interest on FD but we do not treat accurued interest as income in F. Y. 2009-2010.
What will be the accounting treatment and in which F. Y. interest will be taxable?
10 August 2010
Interest will be taxable in F.Y. 2009-10.
lets see wht othr experts say...
lets see wht othr experts say...
VINOD ARORA
(Expert)
10 August 2010
Agreed, TDS by bank is deducted after crediting the amount in bank account. Therefore the amount is treated as received and hence taxable in the same year.
Shudhanshu Agrawal
(Expert)
10 August 2010
Interest will be taxable when it will be received by you. But as bank has to follow accrual basis accounting and they have to comply with TDS provisions, Tds shall be deducted.
In this situation just adjust TDS deducted with your income tax liability and if there is no income tax liability then claim refund from the deptt.
In this situation just adjust TDS deducted with your income tax liability and if there is no income tax liability then claim refund from the deptt.
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