How to treat FDs with long duration

BANK ALWAYS GIVE A INTEREST AND TDS CERTIFICATE ON ACCRUED INTEREST AS ON 31.03.20XX. SO, PLEASE COLLECT SUCH CERTIFICATE AND RECORD INCOME AS PER CERTIFICATE.

Dear All,

As per Sec 145, Income from business or profession and Income from other sources calculated in accordance with the method of accounting employed by the assessee whether mercantile system or cash system. If it is on the cash system, it will be taken as income when actually received and not at the time of credit by bank.

 What ajay has said is also absolutely right. bank deducts TDS on the accrues basis and gives the TDS certificates for such accrued period. As a practical measure and to remove hardship, It is better for u to follow mercantile system and show the interest income as per TDS certificates.

Regards,

Manoj

Originally posted by : Manoj B. Gavali
	Dear All, As per Sec 145, Income from business or profession and Income from other sources calculated in accordance with the method of accounting employed by the assessee whether mercantile system or cash system. If it is on the cash system, it will be taken as income when actually received and not at the time of credit by bank.  What ajay has said is also absolutely right. bank deducts TDS on the accrues basis and gives the TDS certificates for such accrued period. As a practical measure and to remove hardship, It is better for u to follow mercantile system and show the interest income as per TDS certificates. Regards, Manoj

 Since the interest earned is less than 10000, no TDS was done.  Can I calculate the interest on pro-rated basis and include it in my return?

Thank You

IF INTEREST IS WITHIN EXEMPTION LIMIT OF TDS, U MAY TAKE INTEREST ON THE PRO RATA BASIS.  

REGARDS,

MANOJ

Fail to feel any long-term satisfaction from the rewards they receive.

Hardship Short Sale Letter