28 April 2013
I have to include my bank interest in my tax return.The interest certificate provided by bank includes a fixed deposit of 5 yr plan among others.The plan is supposed to mature after 5 yrs and TDS will be deducted on maturity value.My concern is that how can I prevent paying tax on same income twice.Is there any way I can exclude it this year? Thanks for any help in advance.
29 April 2013
You need not include the interest income in your income tax return for the year in which your fixed deposit gets matured if you are particularly including such income each year while it is getting accrued. Even if the bank deducts TDS at the time of maturity you need to just claim the TDS deducted as such while filing the income tax return for such assessment year. An income is not to be taxed twice in any case. You have to include the accrued income in this and every subsequent financial year till the FD matures and thereafter just claim the TDS as and when it is so deducted.
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