Hi
Suppose I invested in a bank FD, lets say Rs 10 lakh on 01/08/2020 for 1 year.
Interest paid is compounded..i.e reinvested.
Suppose i received an interest of Rs 40000 on 31/03/2021 & Rs 20000 on 01/04/2021
and TDS is not deposited by the bank.
Below are my queries
1. If I file income tax return for FY 2020-2021. I need to show Rs 40000 as interest income on FD ?
2. On maturity date, i,e 01/08/2021. deposit is matured and money gets credited in savings account.
Here i'm having doubt whether the bank will deduct tds for entire interest (Rs 60000) thinking that i have not paid tax for FY 2020-2021 ? If so what can i do ?
3. Incase if interest income is not shown for return filing what is the penalty ?
4. Which is better? Paying tax on maturity or paying tax for respective FY's ?
CAclubindia
