Interest on fd
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 December 2013
Dear Sir,
Please consider my query and answer with case law.
can I consider FD interest on receipt basis for calculation of total income. Actually I have an FD which is for 5 Years, but the bank deducted tax and deposited. But the Interest which is actually receive in maturity, that's why I am not consider the interest which is accrued for calculating Total Income. But AO raise notice you should consider the accrued interest in the year of accrual, now that can I do. This interest pertaining to AY 2011-2012.
Please consider my query and answer with case law.
can I consider FD interest on receipt basis for calculation of total income. Actually I have an FD which is for 5 Years, but the bank deducted tax and deposited. But the Interest which is actually receive in maturity, that's why I am not consider the interest which is accrued for calculating Total Income. But AO raise notice you should consider the accrued interest in the year of accrual, now that can I do. This interest pertaining to AY 2011-2012.
02 December 2013
An assessee can maintain his accounts either on cash basis or on mercantile (accrual) basis.
.
In case your method of accounting is on cash basis, you can clarify the matter to the AO.
.
Otherwise, AO is correct as hybrid method of accounting is not recognised under the IT Act. Pl Refer Section 145.
.
In case your method of accounting is on cash basis, you can clarify the matter to the AO.
.
Otherwise, AO is correct as hybrid method of accounting is not recognised under the IT Act. Pl Refer Section 145.
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 December 2013
Thanks Paras Sir,
Sir Please give any case law for accounting for cash basis.
Sir Please give any case law for accounting for cash basis.
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