Interest on fd.
This query is : Resolved
16 April 2012
Hi,
I want to know if interest earn on FD(individual case) is for period falling in between two financial years, e.g. if FD period is Oct'11-sep'12 and total Interest is 10,000. so my question is that while filling ITR for A/Y 2012-13 can a person include interest amt for six months (on assumption-5000/- or actual actual basis-from bank) in his current F/y income, or interest is to be include in year when it will received actual.What are provisions as per Income tax ACT.
I want to know if interest earn on FD(individual case) is for period falling in between two financial years, e.g. if FD period is Oct'11-sep'12 and total Interest is 10,000. so my question is that while filling ITR for A/Y 2012-13 can a person include interest amt for six months (on assumption-5000/- or actual actual basis-from bank) in his current F/y income, or interest is to be include in year when it will received actual.What are provisions as per Income tax ACT.
Mihir Doshi
(Expert)
16 April 2012
Interest on FD is offered to tax based upon accrual principal. Even you can offer the income to tax even on receipt basis for FD interest but advisable to follow acccrual system so Interest for relevant period will be offered to tax in the same period.
Durgesh Laddha
(Expert)
16 April 2012
Why you take any assumption about interest, you should get details from bank. if tds is deduct by bank then you should offer interest income in the return accordingly form 16A, otherwise ignore it, you should offer it on maturity of Fixed deposit.
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