Query regarding taxation of interest on fd
This query is : Resolved
24 August 2011
Dear All,
Please provide me with some help in relation of following query:
One of the Assessee is having Share Capital & Sec Premium of around Rs.45 Lakhs out of which Rs.20 Lakhs has been employed on WIP & remaining amt was invested in FD on 31.03.2010.
During the F Y 2010-11, the invested FD had interest income of around Rs.2.5 Lakhs. While no other activities has been done during the year.
Whether one should pay tax on the interest income or just reduce the FD interest against opening WIP and claim the entire TDS Amt or there is some other way out.
Please provide me with some help in relation of following query:
One of the Assessee is having Share Capital & Sec Premium of around Rs.45 Lakhs out of which Rs.20 Lakhs has been employed on WIP & remaining amt was invested in FD on 31.03.2010.
During the F Y 2010-11, the invested FD had interest income of around Rs.2.5 Lakhs. While no other activities has been done during the year.
Whether one should pay tax on the interest income or just reduce the FD interest against opening WIP and claim the entire TDS Amt or there is some other way out.
CA PARAS BAFNA
(Expert)
24 August 2011
Interest has been received on Capital
or surplus money. It is an income. It can not be debited to WIP A/c.
or surplus money. It is an income. It can not be debited to WIP A/c.
CA. Saurabh Agrawal
(Expert)
25 August 2011
i agree with Mr. paras.
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