TDS on interest on fixed deposits
This query is : Resolved
29 January 2009
suppose an individual has deposited Rs. 5 lakhs for 2years in a fixed deposit scheme in which he will get the compounded interest along with the principal amount only at the time of maturity. in this case should TDS be deducted from this individual every month on the interest accrued monthly or should TDS be deducted only at the time of payment at the time of maturity? which is the relevant rule/ act/ circular concerning this. please help.
K V Subba Rao
(Expert)
29 January 2009
U/s 194A, Banks are required to affect TDS, if total interest for a finanical year exceeds Rs 10000
If Bank affects TDS regulary during the tenure of FD, include Interest in Income and claim TDS
If Bank does not affect TDS regulary during the tenure of FD, include Interest in Income and claim TDS at the time of maturity
This position applies for Individual. In case of Companies, Interest has to returned every year irrespective of whether Bank affects TDS regularly during the tenure of FD or not
If Bank affects TDS regulary during the tenure of FD, include Interest in Income and claim TDS
If Bank does not affect TDS regulary during the tenure of FD, include Interest in Income and claim TDS at the time of maturity
This position applies for Individual. In case of Companies, Interest has to returned every year irrespective of whether Bank affects TDS regularly during the tenure of FD or not
29 January 2009
Income on accrual basis and TDS for year wherein deducted.
Message likes :
1 times
CA Nitin Wadhwani
(Expert)
08 February 2009
Taking Bank's point of view interest will be deducted at the time of credit of such amount.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Capital Gail Exemption Certificate
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- MSME disclosure and disallowance
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
