RAJ KUMAR (FINANCE MANAGER) (1393 Points)
21 July 2013HELLO FRIENDS,
I HAVE OPENED RD A/C IN POST OFFICE 10,000 P.M
P.O DOES NOT ENTER INTEREST IN YEARLY BASIS. IT GIVES THE FULL AMOUT O MATURITY.
PLS. TELL ME WHETHER I HAVE TO GIVE THE TAX ON YEARLY BASIS OR AFTER 5 YEARS ON WHOLE AMOUNT.
PLS. HELP ME. PO DOES NOT GIVE YEARLY CERTIFICATES.
PLS. REPLY ME.
THANKS.
manoj
(student)
(5205 Points)
Replied 21 July 2013
IF U RECIEVE INTEREST IN YEARLY BASIS DEN YEARLY IF U WILL GET ON MATURITY DEN ON MATURITY
Devendra
(Chartered Accountant)
(4775 Points)
Replied 21 July 2013
As you said the Post Office shall give you the Interest and Principal amount at maturity, so it is advisable to show the Interest received on Post Office RD in the year of maturity.
No need to show interest on RD on yearly basis.
As per my knowledge, Income from other sources is to be shown on Receipt basis (As and when income received)
Regards,
Devendra Kulkarni
CA CS Roshan Begrajka
(Chartered Accountants)
(267 Points)
Replied 21 July 2013
either u can calculate income on accrual basis or receipt basis
if u are able to calculate accured interest then pay tax on yearly basis otherwise pay on maturity.
CAclubindia
