Suppose someone makes a fixed deposit with a bank for the period
July,2009 to June 2011. He calculates the income from interest
when the fixed deposit metures in June 2011. The bank had not
deducted TDS since he had submitted form 15G. So he calculates
income from fixed deposit (on receipt basis) only once, in
FY 2011-2012. Now suppose he learns benefit of showing income
from interest from FD on accrual basis and deciedes to show
accordingly. He had started another fixed deposit in January,2012
which will mature in August 2014 . Is he allowed to show income
from interest due to this (from January to March, 2012) in his total
income for the FY 2011-2012? This will imply he is showing interest income
both on receipt basis and accrual basis for the same FY 2011-2012. Is that
allowed or not? If this can not be done this way, is there any
alternative way to make this change?
Thanks.
CAclubindia
