Accounting treatment for tds on fd

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This query is : Resolved

CA Tanay Jindal (Querist)

04 January 2013 I have a confusion in accounting treatment of FD,so plz guide me.
problem is
Eg. F.D=200000
Interest at end of the year=20000
TDS=2000

Then what will be the exact accounting treatment
1=in p&l = 20000 or 18000
2=in b/s = 200000+(20000 or 18000 )
if 18000 then where to show TDS amount of rs 2000

And

if i file my return to take credit of 2000 then how TDS appear in Books of accounts
like if it shown as current assets the why it is shown as current assets coz we have already taken the credit .

plz guide me
thank you in advance

Anil Verma

Anil Verma (Expert)

05 January 2013 B/S- Current Assets: 200,000/-
P&L- Other Income: 20,000/-

Hemant Kumar

Hemant Kumar (Expert)

05 January 2013 Pass the following entries while taking interest on FD after deduct TDS.

1) Bank ac. Dr. 18000/-
to Income Ac.... 18000/-

2) TDS Receivable Ac. Dr. 2000/-
to Income Ac. 2000/-

After the passing of above entries effect as follows:

in B/S. investment - 200000/- :FD Amount
in B/S. Current Assets - 2000/- :TDS Receivable.
in P/L. Income - 20000/- :Interest

CA Prashant Gupta

CA Prashant Gupta (Expert)

05 January 2013 Bank A/c Dr 18000
TDS Rec. A/c dr 2000/-
To interest on FB 20000

in PL 20000 interest income
in BS 2000 TDS receivable
in BS 18000 Bank A/c

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