Clubbing of Income

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Gourav Kapoor (Querist)

28 February 2011 an indivisual has earned 100000 and deposit in bank as FDR in the name of his spouse. Now interest from such FDR will be taxable in the hands of indivisual or spouse ?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

28 February 2011 taxable in the hand of Individual.

Gourav Kapoor

Gourav Kapoor (Querist)

28 February 2011 is accrued interest on FDR is taxable ?
if i do not show accrued interest in computation wat are the consequences ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

28 February 2011 1. In case the FDR is of long duration , entire amount of interest will be taxed in a single year.
2. If TDS is deducted on Interest, claim of the refund will be difficult.
3. It depends upon the method of accounting followed by the assessee, also.
4.In the light of above discussion, it is advisable to take accrued interest on yearly basis.

Gourav Kapoor

Gourav Kapoor (Querist)

01 March 2011 @ paras sir... u meant o say we shud take accrued interest only upto the end of financial year and for next year we shud take accrued interest for that year only...?

and if assessee take whole accrued interest in 1 year then will it be taxable in the upcoming financial years ?

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