Income from bank fd interst paid or accruel

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This query is : Resolved

monika (Querist)

31 July 2016 MY BANK HAVE GIVE ME INTERST CERTIFICATE, IT CONTAINING
INT PAID = RS. 10319
INTERST ACCRUAL =RS. 32204

BANK HAVE DEDUCT TDS ON WHOLE AMOUNT 10% = RS. 4208

SO THESE QUSTION ARISE
1. WHAT AMOUNT SHOULD BE DECLERE IN IT RETURN 10319 OR 32204 OR TOTAL 42523

2 IF DECLERE 10319 CAN I CLAIM REFUND OF TDS( 4208-1031= RS. 3177)

3 IF DECLERE 42523 WILL IT PAY TAX ON IT BECAUSE I HAVE GROSS TOTAL INCOME RS . 716680 AND BELONG 20% TAX SLAB, BUT BANK HAVE DEDUCT TDS AT 10% ON INTERST

Neljo Davis ACA

Neljo Davis ACA (Expert)

03 August 2016 Interest income is taxable on accrual basis. My suggestion is to declare Rs.42,593/- as interest income of the current year and pay balance tax. Alternatively since the amount of Rs.32,204/- is not received, you can declare income of Rs.10319/- and claim corresponding TDS Credit of Rs.1031/- in the current year ITR. TDS credit of Rs.3177/- can be carry forwarded. Declare the interest income of Rs.32,204/- and TDS of Rs.3177/- in the year in which interest income would receive.

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