Tax on Intrest earned on Fixed Deposit

This query is : Resolved

Hitesh (Querist)
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22 February 2009 If have no other income but have a fixed deposit in the bank for 10 years at the maturity time is the intrest earned taxable & @ what rate

K V Subba Rao

K V Subba Rao (Expert)
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22 February 2009 Please visit
http://money.outlookindia.com/article.aspx?sid=5&cid=38&articleid=2523

Technically speaking interest should be returned on accrual basis.

If Bank affects TDS on accrual basis, show interest income every year and claim credit for TDS

If Bank does not affect TDS on accrual basis, show interest income and claim credit for TDS in the year of receipt

In reality,we have to take a practical view