Taxability of FD interest

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the taxability of Fixed Deposit (FD) interest, even when Form 15G has been submitted to the bank. While Form 15G prevents TDS deduction, it doesn't exempt you from declaring the accrued interest in your Income Tax Return (ITR). You can choose to declare interest on an accrual basis (monthly) or receipt basis (on maturity), but failing to declare it can lead to mismatches with your Form 26AS.

Puneet Jain

Puneet Jain (Querist)

22 February 2020 If i have made an FD for Rs 100000 @12%p.a. on 1 aug 2019 and filed for 15G with the bank, when should i show the interest accrued on it. Also the bank officials asked me to file 15G again in next year between 1 april 2020 and 31st july 2020. Some people suggested me to show interest according to months in the relevant PY while other suggested me to show all the interest when FD is matured

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

22 February 2020 Law permits to show interest on 'accrual' basis or 'receipt' basis. Choice is yours.

Eswar Reddy S

Eswar Reddy S (Expert)

29 February 2020 But what is the need to show interest ITR?? You have submitted 15G/15H.That means you don't have taxable income..

Puneet Jain

Puneet Jain (Querist)

14 April 2020 submitting form 15g/h does not mean that you do not have to show interest in ITR. It means you do not have taxable income and the bank should not deduct TDS. but the interest in earned on FD. also 26AS shows details relating to 15g/h. if you do not show interest , it will be a mismatch

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