Hi,
I had taken a fixed deposit for an amount 2,50,000 INR in the financial year 2012-2013 (August 2012). The maturity period was 1 year. By March 31, 2013 TDS was based on actual and accrual basis. Point to be noted is that I got the premature withdrawal for this FD in April 2013 and dint receive the accrued interest for which TDs was deducted by the bank. Some penalty was also levied on the interest earned. Seeking answers to the following queries:
1. How to handle this issue on accrual basis for FY2012-2013 when at the time of premature withdrawal (FY 2013-2014), I dint receive the accrued interest for which TDS was deducted in the last financial year? What would be the tax implication for the next year filing?
2. Is the interest received at the time of premature withdrawal taxed post-penalty or even the penalty sum is also taxed?
Regards,
CAclubindia
