Accrual method on tds

509 views 2 replies

I want to know how do I find out if my Bank is deducting TDS on FD with interest payable on maturity, and FDs with Interest payable monthly every Financial Year or they are going to deduct TDS on FDs whose Interest is payable on maturity in the Year the FD matures?

And I want to know how do I setup method of paying TDS with Accrual method if I was using Accrual Method for TDS deduction or Cash Method and how to migrate to Accrual Method for TDS deduction depending upon which method I'm using atm?

Replies (2)
Interest on TDs is deductible u/s 194A by Banks on interest on Fixed Deposit where the Interest on.Fixed Deposit exceeds Rs 10000 p.a. On the Fixed Deposit Certificate , the Interst Amount that the Investor shall be entitled to is calculated and Printed on.the Certificate itself. So in case the interest Amount on FD exceeds Rs 10000 in a financial year, Tds shall be deducted.
Now the second part of your Question TDS has to be deducted on.certain specific payments only. In Some cases the liability to deduct TDS arises at the time of payment only whereas in other cases the Liability arises at the time of cedit in books or payment whichever is earlier.. Hence you need not change your mthod of Accounting all of a sudden without going through the provisions of TDS.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 July 2026
Article Assistant and B.com pass

BANSAL YOGESH AND CO

Gautam Budh Nagar

B.Com

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

G A R U D & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

Sahil Agarwal & Company

Mumbai

CA Inter

View Details
Company
13 July 2026
AVP / VP - PCG Advisory

Workforce Connect

Mumbai

MBA

View Details
Company
06 July 2026
Senior Accountant

Arvindkumar Maniar & Co.

Rajkot

CA

View Details