Sir,
I have fixed deposit with bank. Bank on yearly basis deducted the TDS on interest accrued on the FD & issued the TDS certificate for the same. On one occasion Bank debited to my saving account against TDS . how can bank Debited to saving account for TDS against Interest Accrued on FD.
vinod bhagat.
Bank will pay you the full amount of interest on maturity as it has already recovered the amount of TDS from your saving account. Secondly, on mercantile basis, bank has to provide for interest expenditure in its profit & loss account which is accrued but not due. In such cases, on accrual basis, bank will deduct tax at source and then only it will be allowed for the deduction on interest expenditure.
NOW THE BANK WILL PAY YOU THE FULL AMOUNT OF INTEREST MENTIONED IN THE CONCERNED CERTIFICATE, NOT THE DEDUCTED AMOUNT.
SO DNT WORRY.
BUT IF BANK DOESNT DO THAT THEN YOU CAN ALWAYS CLAIM THE FULL AMOUNT BASED ON THE ENTRY EVIDENCING THE DEBIT TO YOUR SAVING A/C.
REGARDS,
CA RITESH KOTHARI
| Originally posted by :vinod | ||
| " | Sir, I have fixed deposit with bank. Bank on yearly basis deducted the TDS on interest accrued on the FD & issued the TDS certificate for the same. On one occasion Bank debited to my saving account against TDS . how can bank Debited to saving account for TDS against Interest Accrued on FD. vinod bhagat. |
" |
Bank will pay you the full amount of interest on maturity as it has already recovered the amount of TDS from your saving account.
u clame whole amt. of int.
CAclubindia
