TDS on accrued interest

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ramanncharyulu (Querist)
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11 June 2009 Hi

customer invested 15 lacs FDR for one year @ 10.50% interest pa.,with HDFC Bank on 14-10-08

The bank deducted TDS Rs.9143/- & issued form 16A on accured interest Rs.80701/- during the fin.year 2008-09
+1500000+80701-9143 = closing bal.1577557
as at 31-3-09

Fin.year : 2009-10
but the fdr cancelled before due date ie., on 04-05-08. but gross interst earned only
Rs.67,200/-

Tax paid on 80701/- (during fy: 2008-09)

how can i make entries

ramanncharyulu

ramanncharyulu (Querist)
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11 June 2009 customer invested 15 lacs FDR for one year @ 10.50% interest pa.,with HDFC Bank on 14-10-08

The bank deducted TDS Rs.9143/- & issued form 16A on accured interest Rs.80701/- during the fin.year 2008-09
+1500000+80701-9143 = closing bal.1577557
as at 31-3-09

Fin.year : 2009-10
but the fdr cancelled before due date ie., on 04-05-09. but gross interst earned only
Rs.67,200/-

Tax paid on 80701/- (during fy: 2008-09)

how can i make entries

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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11 June 2009 1)If method of accounting followed is accrual
In F.Y 2008-09

Accrued Interest A/c......Dr
TDS Receivable A/c........Dr
To Interest Income A/c

Then in F.Y 2009-10

Bank A/c..................Dr
Interest Income A/c.......Dr
To Accrued Interest A/c

2)If method of accounting is Cash

Directly in F.Y 2009-10

Bank A/c...............Dr
TDS Receivable A/c.....Dr
To Interest Income A/c

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