CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6881 Points)
30 August 2011Dear All
our one of the client (Ind) has made fixed deposit of Rs1500000/- in Schedule bank for five year
& interest to be payable at the time matuarity but accumulated in each year
the said assessee has maintain books on accuruval accounting system
can said total interest amt. received in fifth year taxable in fifth year
if he doing this he may be fall under 30% slab
please advise
valji
(Accounts manager-MBA)
(2150 Points)
Replied 30 August 2011
since the assessee maintaing books of accounts it is advisable to book interest accoured during the years so it also take adtantage of TDS deducted by the bank
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6881 Points)
Replied 30 August 2011
If said assessee maintains books on cash basis????????
CAclubindia
