Income from other source

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2013 if i have taken a fixed deposit on 1.4.2012 worth rs 10000 for 5 years @9% interest? fd mature on the 5 th year;

1)whether rs 900 be included as income from other source, though no interest is received, as fd matures on 2017

OR

2)RS 4500 as income from other source on the 5 th year ( as interest is received on the 5 th year)

which one is correct

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

23 October 2013 As per accrual basis,
In the end of every year Tax will deducted on the Accrued Interest..

your 1st option is correct...

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2013 aryan singhania:

but tax wont be deducted as interest income has not exceeded 10000

if we are computing tax for the current year.
should i include this 900

OR

4500 at the end of the 5th year.
what does the act state;

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

23 October 2013 Yes, if the interest amount won't exceed the specified limit that's 10000 then it will not be taxed..

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2013 if i want to compute tax for the current year then should i include rs. 900 as income from other source or not, as my fd matures on 2017

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2013 if i am computing tax for the current year should i include this 900 (or not) as income from other source, ad my fd matures on 2017 and interest received on fd is 4500 as on 2017.
so for the current year on computing tax should i include this 900?