banner_ad

Urgent-interest on fd

This query is : Resolved 
Profile Image

Profile Image

(Querist)
03 February 2014 Dear All
Is it possible to provide for tax the interest received on FD on it's maturity even though the same is credited prior to maturity periodically?
Profile Image

AVTAR SINGH

Profile Image

AVTAR SINGH (Expert)
03 February 2014 No. The interest on FDR has to be taken on accrual basis.
Profile Image

rakesh agarwal

Profile Image

rakesh agarwal (Expert)
03 February 2014 there is no condition on accounting it as cash or accrual in Income tax act, since it is taxable under chapter Income from other sources.

normally it is preferred to book on accrual basis to avoid high taxation at a later date. But the payer of Interest will tax (TDS) in the year of accrual
Profile Image

AVTAR SINGH

Profile Image

AVTAR SINGH (Expert)
04 February 2014 Once the interest income is credited periodically as stated in the query, it has to be taken on accrual basis.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details