16 December 2009
hello when is the interest on recurring deposits taxable- on year to year basis i.e. on accrual basis or on receipt basis i.e. in the year of maturity of recurring deposit thanks in advance
16 December 2009
It depends upon the method of accounting adopted. If u show income under the head " income from other sources" regularly under the cash system of accounting, interest on RD may be offered at the time of Maturity. Otherwise, ie if mercantile system is followed for the above purpose, RD interest should be offered every year under accrual concept.
16 December 2009
Respected Sir Thanks for replying the person getting int. on rd is salaried employee.. could he get the figure of int. from bank from which he has done the rd. Thanks in advance