Accounting treatment for tds

While vouching, today I got confused with the accounting treatment of TDS. Please help me with regards to the following situations :  

Situation A :

The client concern has a fixed deposit in the form of Security Deposit with a particular trading entity. The client concern every month receives Interest on the Security Deposit subject to TDS. My questions are :

a) What should be the entry when Interest Income is to be booked at the end of each month by the client entity?

b) What should be the entry when Interest Income after deduction of TDS is actually received in bank after TDS?

Please help me in this regard. It would be great help if somebody explains me the above case with simple numerical example. Thank You.

Replies (1)

when interest income due.,,

- XYZ A/c Dr....

  To Interest Income A/c

and when Interest is receved

- Bank A/c Dr

 TDS Receivable A/c Dr.

   To XYZ A/c

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details