1. Rs 12500 @ 9% for 50 days on Mar 9, 2011 2. Rs 30000 @ 10.25% for 555 days on Mar 24, 2011 3. Rs 27000 @ 10.34% for 5 years on Mar 24, 2011 (Company FD with Interest on Maturity)
Since these FD's are with different institutions and different periods, there would be no TDS made. I would like what will be the tax treatment in my hand on the interest and how would I show them in ITR for each FY?
15 April 2011
Interest on FD has to be offered and to be assessed under the head"income from other sources'. The depositor has the option to declare the income on cash basis or accrual basis as per section 145(1) of the Income tax Act,1961.
15 April 2011
Thanks sir for your instant reply. Just one question. Since the investments have been made with different institutions, so if I would like to declare interest on accrual basis, would I need to calculate the interest for each year and then declare or would the same be provided by the respective institution.
19 April 2011
You should calculate interst on different FD on cash basis as well as accrual basis. Then you should opt for the best option which is most beneficial to you
CAclubindia
