I am having bank fixed deposits which will be maturing in next financial year and i had opted for interest at maturity.
Will interest earned in this fin yr has to be concidered as an income while doing income tax computations for this year or it will be considered at the time of maturity.
Amit
generally people take whole interest as taxable at the time of maturity only to avoie hassel every year. As per Accounting practices, you need to caclulate interest every year on accrude basis and treat this as accrude interest on FD's. This will also reduce the burden of tax at the time of maturity also.
CAclubindia
