Principal loss on corporate fd -- how to claim loss in itr

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Dear Seniors,

Kindly assist me with the following Query. 

1)  Made a company  FD  ( Avon group )  for  1 years ( Apr-2012 maturity ) , another for  2 years ( Jun-2013 maturity )

2)   AVON company customer support has been delaying the payment of prinicipal, and the interest for the  1-year FD, now delayed for 1-year now.

How could I in this case claim a loss of Principal amount, and show it in the ITR to  atleast reduce little bit my tax liability ?

 

Thanking you in advance,

V Chir

Replies (1)

You cannot claim the loss of principal as it was only loss of deposit.  It is not a trading loss either.  So you cannot reduce your tax liability on that count.  What about the interest component?  The Taxman would like to tax it on accrual basis even though you have not received it.  This is another sticky question over which there is no clarity. 

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