TDS and Cash System - Very Important

you will claim TDS on year to year basis....

because TDS is like advance tax..

Accrued interest on F.D. (year-1)= 100000

Less: advance tax paid

    (i.e. TDS deducted)                  =  10000

now, bank will credited interest of Rs. 90000.

after 5 years, bank will pay you interest of Rs. 450000 (i.e. 90000*5) not of Rs. 500000

Use year to year system not follow the receipt basis..for ur Beneficial

if u follow the cash basis then the TDS for last 4 years would lapse, u will get only TDS deduction for current year while the taxability would be on whole 5 lacs, so year wise calculation is better option,