Urgent-interest on fd
This query is : Resolved
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?
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?
03 February 2014
No. The interest on FDR has to be taken on accrual basis.
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
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
04 February 2014
Once the interest income is credited periodically as stated in the query, it has to be taken on accrual basis.
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