Interest on Fixed Deposits

Hi,

you need not worry about the minor adjustments.

please tell me the section of ppf interest which is exempt....

DEAR RISHAB,

FOR THE INTEREST ON FD'S FOR WHICH TDS IS DEDUCTED BY THE BANK, IT IS BETTER TO TAKE THE INTEREST AS PER TDS CERTIFICATE RECEIVED. FOR THE FD INTEREST ON WHICH TDS NOT DEDUCETD, U CAN CALCULATE INTEREST BASED ON THE INTEREST STRUCTURE OF FD. E.G. IF IT IS QUARTERLY COMPOUNDING, INTEREST CREDITED ON THAT BASIS. THIS WAY MAY AVOID THE INTEREST RATE DIFFERENCE BETWEEN INTEREST AS PER TDS CERTIFICATE AND AS PER INTEREST CALCULATOR.

PPF INTEREST EXEMPT U/S 10(15).

REGARDS,

MANOJ

Thanks everyone for your responses,

Dear Manoj, we calculate interest (accrued) in excel sheet based on the Interest structure of Fixed deposit (Quarterly cumulative credit of interest-at every quarter).

For instance: F.D from 29-11-2009 to 29-08-2011 of Rs. 1,00,000 @ 11% we calculate interest:

F.Y 2009-2010 = 3,693

F.Y 2010-2011 = 11,852

F.Y 2009-2010 = 5,315

But the question what i am referring to is that for all clients we follow this same system, is this system wrong or can cause problems for clients in I.T.O? (Nowhere in I.T rules it has been mentioned to show interest as per T.D.S Certificate, so we follow this method of calculating interest as per accounting principles)

Because for some F.d's TDS are deducted and on others the T.D.S is not deducted, also what generally happens is that a F.D is normally spread over a span of 2-5 years

a)for previous years the T.D.S is not deducted so we have to calculate interest as per our calculations,

b) in next year the TDS gets deducted,

c) again if the F.D was due for maturity then there is less interest so no T.D.S.

Now here in case (b) if we take that interest amount as per T.D.S certificate, then it may cause jumbling of figures also there are chances of mistakes here. Also most of the clients out of mistake and less knowledge of I.T submit 15G/15H forms so there is no T.D.S (Which of course is wrong) But now anyways we have to do our work.

DEAR RISHAB,

U CAN TAKE INTEREST INCOME FROM YOUR BANK ACCOUNT STATEMENT

TOTAL INCOME= INCOME RECD. IN BANK ACCOUNT+ACCRUED INCOME(IF ANY)

& THE DETAIL OF TDS DEDUCTED , SHOULD TAKE FROM TDS CERTIFICATE, ISSUED BY BANK OR U CAN TAKE HELP OF FORM 26AS.