Menu
Interest on Fixed Deposit Taxability
In case FD interest amount is automatically reinvented as FD by Bank than that interest amount is taxable in such relevant year or when FD matured?
Replies (5)
Interest on FDR is taxable on accrual basis
The interest amount is taxable in relevant year...
Banks deduct TDS on interest income: when it is accrued and not when the FD matures & interest is paid out. So if you have a FD for 3 years – banks shall deduct TDS at the end of each year.
Fd interest is taxable in the year of accrual..If it exceeds RS 10000 ..Bank deducts tds on the same..But if assessee income is below the exemption limit then He can submit form 15G/15H requesting bank not to deduct TDS..
On accrual please report income as per each year
Recent Threads
- Timing difference in availment of ITC reporting in
- Import of goods and igst related
- DGFT licence port mismatch with Postal (PAD) impor
- Tax on sale property (Land)
- Recruitment for Jr.Accountant.
- Refund of tax paid earlier
- WHY and which ITR just to declare company shares ?
- Contribution to political party
- 40+ single CA group
- Interest u/s 234B on updated return u/s 139(8A)
Related Threads
CAclubindia
