Tds on accrued interest but receipt basis followed in itr

sk_1122 (NA) (134 Points)

03 September 2011  

I have a doubt/query. Just thought of this scenario which might be applicable to me in future:


I filed my first return this year. Last year I did a 5 yr tax saver bank FD. I didnt show its interest (accrued till end of MArch 2011) in the return and decided to show on cash/reciept basis only in the year the FD matures. So, I am following the Reciept/Cash basis from the beginning which is fine.


Now, my question is:

If I do some other FDs in that same bank, it the total yearly FD interest may cross 10000 for a year including the accrued interest for that year of the long term 5 yr FD mentioned above. Bank will deduct TDS on it. But, I will have to show the total interest earned on that FD on cash.reciept basis in the maturity year.

So, how will such TDS deducted each year be adjusted? Will I claim refund for that amount each year from ITD? and then pay the tax on entire FD interest amount in the FD maturity year?


Plz clarify. I hope I was able to explain the case properly.

Would expect detailed answers as I am not a tax expert :)

Thanks