Investments and interest earned
This query is : Resolved
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.
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.
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.
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.
02 March 2012
Interest will be bifurcated in two parts for the two financial years.
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