I am facing a problem. My all income comes from interests on FDs as I have no pension. Most FDs mature after 2-3 years. I have a few FDs whose interest is credited quarterly in my SB A/C to meet daily expenses. As the TDS is deducted by banks on accrued income every March end, the value of FD reduces by TDS amount & hence final maturity value becomes much less than what it should be. Why income tax on accrued income & not on real income at the time of maturity of FD? May be it can be made as an option at the time of investment?
How to pay TDS if all income is from interest only?
RAKESH JAIN (RETIRED COMPUTER PROFESSIONAL) (369 Points)
10 July 2009