Tds on fixed deposits

My company has accepted deposits from related person.. Please guide me whether i have to deduct TDS on same on monthly basis , Quarterly basis or yearly basis.   The amount of total interest during the year exceeds RS. 10,000/-

 

Regards

 

VG

Replies (6)

TDS shall be deducted whenever interest is paid or when it becomes payable.

Sir the maturity of the deposit is after three year and will not pay before three years.

Dear Vishal Sir,

If you are crediting the said amount (in excess of Rs. 10000) to the Interest payable account or suspense account or under any head (which shows that you are reluctant to pay that amount to that other person, though you haven't paid any amount) you need to deduct TDS on the same... and normal TDS provisions would be applicable.. i.e. on every payment/on every crediting of such amount to the aforesaid accounts in your books etc... you need to deduct TDS... and deposit it to the Govt.

 

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

 

 

TDS is to deducted & deposited on qtly basis.

Vishal

TDS will be deduct when int.paid or credited whichever is earlier.  in ur case if co. paid int. annualy TDS will be deducted annually if it is monthly TDS will be monthly.

rgds

sandeep

Dear Vishal,

As per the Provisions of Income Tax Act-1961, TDS on all payments except salary has to be deducted on:

Date of payment or
Date of crediting the party in books of A/c of payer for such payment 

Whichever is EARLIER

In case of Deposits, Interest might be paid on maturity,i.e., after 3 years but if depositer is debited on any date earlier than the date of payment for such interest then TDS has to be deducted immediately on credited amount.

 

Regards

Deepika Jain

deepikajain684 @ yahoo.com

 

 

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