Fd provision

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Sujata Dube (Querist)

13 February 2016 Dear Sir, Pls advise Fixed Deposit Provision in income Tax act. if FD Period1.50 yr in which amt show in ITR . Regards, Sujata

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

14 February 2016 Barring bodies corporate, which necessarily have to maintain accounts under the mercantile basis of accounting as per provisions of Companies Act 2013 (1956), other assessees may follow either cash basis or mercantile basis. Further assessees have the option to account for different sources on different basis.

In case your assessee is not a body corporate, the interest can be accounted for at maturity.

However, banks / companies deduct TDS and from the TDS certificate or 26AS the accrued interest can known and alternatively recorded annually.

Interest income is part of Income from Other Sources, except in case of banks, financial institutions and NBFCs, and should be shown under that head in the ITR.

Sujata Dube

Sujata Dube (Querist)

14 February 2016 If individual person invest 1lac Rs. on FD for period 1.5yr to the F.Y 14-15 for this yr and next f.Y in which amt show in return i.e Only Interest amt or total maturity amt plz advise

Sujata Dube

Sujata Dube (Querist)

15 February 2016 If Individual person Invest 1lac Rs. on Fixed Deposit F.Y 15-16 Fd period 1.5yrs In that case in which amt show in F.Y 15-16 and next F.Y

Sujata Dube

Sujata Dube (Querist)

15 February 2016 If Individual person Invest 1lac Rs. on Fixed Deposit F.Y 15-16 Fd period 1.5yrs In that case in which amt show in first F.Y and next F.Y

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

15 February 2016 For income tax purposes only the interest is subject to tax and the same has to be reflected in the ITR. The principal amount is not shown as it is not income. If you, an individual, have invested Rs. 1 lakh for 1.5 years @ 8% p.a. on 1st April 2015 and the interest is payable only on maturity, you have the option to either show the interest accrued till 31st March 2016 in the ITR for A.Y. 2016 - 17 or the entire interest received on maturity inthe ITR for A.Y. 2017 - 18. If you want to show the interest in both the years in F.Y. 2015 - 16 you will show Rs.8,240/- interest received in the ITR for A.Y. 2016 - 17 and Rs.4,373/- in F.Y. 2016 - 17 in the ITR for A.Y. 2017 - 18. There will no TDS on interest since the interest earned in the financial year is less than Rs.10,000/-. Even if you opt for showing the income of maturity, the sum of Rs.12,613/- is not subject to TDS since the interest earned in each financial year is less than Rs.10,000/-.

In case you have opted to receive the interest either quarterly, half yearly or annually, then the amount credited would Rs.8,000/- in F.Y. 2015 - 16 and Rs.4,000/- in F.Y. 2016 - 17 and these amounts would automatically be reflected in you bank statement / passbook.

Sujata Dube

Sujata Dube (Querist)

16 February 2016 Thank u so much sir

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