actually i have certain confusion regarding treatment of fixed deposit . suppose x person has a fd , now on fd on maturity we get lumsum amount that is principle as well as interest and if fd is for say 5 years. so what would x do. i mean only disclose the amount of interest in the year of maturity. and claim the tds deducted by bank as refund if x has no other income taxable.please let me know what to do with fd amount and it's interest.
21 June 2009
take interest on accrual basis year by year in your tax computation and also take TDS certificate from bank if bank has deducted TDS. then on maturity take last year interest in your computation credit all interest to capital a/c.
22 June 2009
You can also take the interest in the last year itself by following cash method and claiming the tax deducted and accordingly claim the refund.
CAclubindia
