10 August 2010
Agreed, TDS by bank is deducted after crediting the amount in bank account. Therefore the amount is treated as received and hence taxable in the same year.
10 August 2010
Interest will be taxable when it will be received by you. But as bank has to follow accrual basis accounting and they have to comply with TDS provisions, Tds shall be deducted.
In this situation just adjust TDS deducted with your income tax liability and if there is no income tax liability then claim refund from the deptt.
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