Change in method of accounting

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This query is : Resolved

R.KANDASUBRAMANIAN (Querist)

06 February 2016 Status- Individual

the tax payer is an individual and has only income say income from interest from bank fixed deposits in 2014-15-31.3.2015.
all these years,have shown accrued interest as income in her return of income

Now -
intends to change from this accrual method to cash basis so that actual interest received only will be taken in to account as income from other sources.
if changes to cash basis, whether this case has been taken for scrutiny case
another point, how to carry over TDS to next financial year
how to make TDS entry in ITR

please suggest your views

Nikhil Kaushik

Nikhil Kaushik (Expert)

07 February 2016 you cannot shift to cash basis now as tax standard require income from other sources to be accounted for on accrual basis.

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)

07 February 2016 THANKS sir for your reply to us
since the tax payer is NON resident, appointed one retainer on salary basis to take care of her banking operations say renewal of fd etc , can this salary expenditure to be claimed against this interest from fd

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)

07 February 2016 Sir, further to this, tax standard will apply from asst year 2016-17, kindly confirm

Nikhil Kaushik

Nikhil Kaushik (Expert)

08 February 2016 ideally no. you should not be claiming such expenditure. but no harm in making a claim!

Nikhil Kaushik

Nikhil Kaushik (Expert)

08 February 2016 yes it is applicable from AY 2016-17......

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)

08 February 2016 thanks for your reply sir
expenses again bank interest -only for management fees, advising about investments,which bank offers more interest rate etc

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