Tax on Interest Income-Accrued vs Paid

Sreekanth (Student) (8 Points)

26 December 2020  

I have a query regarding payment of income tax on the interest earned on Fixed Deposits.

Suppose during the FY 2018-19 the bank had deducted tax on both the interest credited to the account as well as the accrued interest. During the next FY 2019-20 the accrued interest will be paid to the account on the maturity of the deposit and the bank would again deduct Tax on the interest paid.

Wouldn't it be taxing the same interest income twice?