Udgam Koomar (Tax Technologist) (1949 Points)
07 March 2016Hello, if a FD is for one year and between 2 FY for eg from July15-July 16, and if total 50000 interest is paid in total, will the TDS be done at last paying month of the TDS will be done on accrued amount from July15-March16 and then next TDS from April16-July16. Accrodingly in ITR, the accrued interest income should only be added to the income from other sources?
Sunil
(CA)
(185 Points)
Replied 07 March 2016
Banks normally deduct TDS on accrual basis. Even if they didn't deduct TDS, its better to disclose the same while filing return, as if it is offered in one year in total, the entire amount is charged to tax in that year and if the slab rate is chaged because of that, you will end up in paying more taxes.
The Interest of FD will be charges Under Income from Other Sources.
CAclubindia
