Related 2 interest on FDs nd RDs long term and short term
This query is : Open
18 July 2011
Sir/mam,
plz tell me about provisions related to interest on FDs and RDs. What is the provision in direct tax code for maturity amount of short term and long term FDs and RDs......
plz tell me about provisions related to interest on FDs and RDs. What is the provision in direct tax code for maturity amount of short term and long term FDs and RDs......
19 July 2011
Interest on FD is taken on Accrual basis as per Bank Certificate or Form No 16 given by banks.
In case TDS is not applicable the same interest can be taken on accrual basis. Banks generally provide compound interest on FDR with quarterly rest.
In case of RD interest can be calculated on accrual basis, however this calculation is generally not made available by banks. However, in small cases interest on maturity basis can be taken.
As I think the same treatment will prevail in DTC also.
In case TDS is not applicable the same interest can be taken on accrual basis. Banks generally provide compound interest on FDR with quarterly rest.
In case of RD interest can be calculated on accrual basis, however this calculation is generally not made available by banks. However, in small cases interest on maturity basis can be taken.
As I think the same treatment will prevail in DTC also.
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