Investments and interest earned

This query is : Resolved

Lestav (Querist)
Follow

02 March 2012 hi,
In August 2011 i invested some money in company FDs for a period of 1 year. Rather than monthly or quarterly interest, i have opted for cumulative interest - i will recive the interest amount + my principal amount at the time of maturity in Aug 2012.

Keeping this in mind if i have to plan for taxes - do these amounts earned become taxable in the current year (FY2011-2012) because i made the investment in this year or in the year 2012-13 because i earn the interest in that period.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

02 March 2012 The interest accrued during the current year shall be taxable in the current year.

You should obtain from the bank an interest certificate which will give the exact amount of interest accrued during the year.

However, if TDS has been deducted by the bank, the bank shall give a TDS certificate in Form 16A.

anurag

anurag (Expert)
Follow

02 March 2012 Interest will be bifurcated in two parts for the two financial years.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

P.S.Harishankar

Sabareesan S Venkatesh

ANUPAMA L KANT

Moby Mogli

Mitesh

Subscribe Now

Investments and interest earned

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA