For a salaried person,
1) can interest income from FD be paid when interest is received on maturity instead of accrual?
2) If in the previous years tax on FD interest income has been paid on accrual basis, can tax be paid on intrest income on receipt / maturity basis in current year? Or the same principle needs to be followed every year?
Pls note - TDS has been deducted by the bank and it appears in Form 26 AS
Thank you
Tax to be paid on interest during the year in which it is earned. Moreover, since this appears in 26AS, it is better to show it on the basis of 26AS.
I understand that it is advisable to consider on accrual basis but my qs is - Is it allowed as per IT rules to declare and pa interest income on FD on maturity?
Due to some one time income, the tax bracket has shot up and hence wanted to check if there is an option to pay tax on FD interest on maturity when tax bracket will be lower/
AIS
will show everything including saving and fixed deposit interest paid as per AY, the dividend paid, capital gain sale and purchase amounts of shares and mutual funds, etc.
Example If you open your fixed deposit in 1st November 2021, Then it will calculate interest number to December, January to March, for the financial year 2021- 2022,
For the financial year 2022 -2023 April to June, July to September, and October, again if you renew your fixed deposit it will calculate interest from November to December. From January to March
some banks pay interest quarterly as per the financial year so it will show properly. The same will be in your bank statement. any FEMA transactions. Any Inward and outward foreign remittances All investments with the bank and with financial institutions
Anywhere you are linked with your pan number all details will be recorded No chance to hide your income
When you file your income tax return, you will find all data prefilled in the income tax return if you find any data is Wrongly prefilled you can change it. Even you will get Salary details from 16 data prefilled Including TDS deducted.
So no chance of any mistakes, really good achievement in the income tax system, less work for income tax employees, everything will be checked by computers.
One day IAS Will replace form 26 AS
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