Accrued interest

Mihir (Wealth Manager) (5293 Points)
Replied 19 September 2014

Ask your bank whether they shall deduct TDS from accrued interest, and if they will, then ask for the interest and TDS certificate from the bank, and show the interest accrued in your ITR and also claim TDS credit each year.

Aditi Dosi (CA Final Student) (105 Points)
Replied 19 September 2014

you can see in 26 as whether ur tds is deducted or not if it is deducted the consider that interest as your income in year in which it is accrued if not than dont consider that as income

CA Goutam Sharma (Chartered Accountant in Practice) (468 Points)
Replied 19 September 2014

Even if the bank has not deducted tds, it may so happen that the cummulated interest earned by you becomes an amount chargeable to tax when considered along with your regular annual income in the year of maturity. so there is no point in defering such income in such case. Get assured of your prospective income at the time of maturity. further, if bank have deducted tds, you should file your itr and claim it back. So , i would suggest you to consider it in current year itself

Jayesh (Partner) (21 Points)
Replied 19 September 2014

As individual you have option to either follow cash method or accrual method of accouting for your income from other source and accordingly you have to offer income in your itr. Tax deducted or not does not determine it.

Meka Sandeep Reddy (ACA with COP) (70 Points)
Replied 19 September 2014

Generally Banks will offer interst on FDR 's Monthly, Quarterly, Semi annualy, Annually.

Bank has right deduct Tds if interest payment exceeds Rs 10,000 /- per Financial year.provided if you submit form no 15G ( individuals whose age limit is below 60 years ) or Form no 15H ( individuals whose age limit is equal or more than 60 years ) along with your pan no in the begining of the financial year ( or) at the time of deposit. Bank would not deduct TDS on interest.few Banks will offer interst along with maturity date of FDR in this case total interest receive maturity date you know bank deduct TDS on each financial year wise or not . if yes take form no 16A from the Banker and disclose your interest income under the Income from other sources . your total income does not exceed basic exemption limit that TDS claimed as Refund.other wise adjusted it. now days Bankers are following above provision only. If you not submit PAN or submit form no 15G / 15H with out PAN they deduct TDS @ 20% p.a

Meka Sandeep Reddy (ACA with COP) (70 Points)
Replied 19 September 2014

Generally Banks will offer interst on FDR 's Monthly, Quarterly, Semi annualy, Annually.

Bank has right deduct Tds if interest payment exceeds Rs 10,000 /- per Financial year.provided if you submit form no 15G ( individuals whose age limit is below 60 years ) or Form no 15H ( individuals whose age limit is equal or more than 60 years ) along with your pan no in the begining of the financial year ( or) at the time of deposit. Bank would not deduct TDS on interest.few Banks will offer interst along with maturity date of FDR in this case total interest receive maturity date you know bank deduct TDS on each financial year wise or not . if yes take form no 16A from the Banker and disclose your interest income under the Income from other sources . your total income does not exceed basic exemption limit that TDS claimed as Refund.other wise adjusted it. now days Bankers are following above provision only. If you not submit PAN or submit form no 15G / 15H with out PAN they deduct TDS @ 20% p.a

Meka Sandeep Reddy (ACA with COP) (70 Points)
Replied 19 September 2014

Generally Banks will offer interst on FDR 's Monthly, Quarterly, Semi annualy, Annually.

Bank has right deduct Tds if interest payment exceeds Rs 10,000 /- per Financial year.provided if you submit form no 15G ( individuals whose age limit is below 60 years ) or Form no 15H ( individuals whose age limit is equal or more than 60 years ) along with your pan no in the begining of the financial year ( or) at the time of deposit. Bank would not deduct TDS on interest.few Banks will offer interst along with maturity date of FDR in this case total interest receive maturity date you know bank deduct TDS on each financial year wise or not . if yes take form no 16A from the Banker and disclose your interest income under the Income from other sources . your total income does not exceed basic exemption limit that TDS claimed as Refund.other wise adjusted it. now days Bankers are following above provision only. If you not submit PAN or submit form no 15G / 15H with out PAN they deduct TDS @ 20% p.a

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 19 September 2014

Kindly show the amount in your return as interest and pay tax. It is taxable on accrual basis.

mahendra jangid (Dy. General Manager (Finance)) (444 Points)
Replied 20 September 2014

Originally posted by : Jayesh

As individual you have option to either follow cash method or accrual method of accouting for your income from other source and accordingly you have to offer income in your itr. Tax deducted or not does not determine it.

I agree...