Taxability basis for company fixed deposit

Tax queries 103 views 2 replies

Dear All,

Can any one please clarify on the below query?

How is the interest taxable on a cummulative company fixed deposit (Ex. Bajaj Finserv deposit)? Is the tax to be paid on accrual basis as we do for bank FDs (or) is it payable one-time at the time of getting the maturity proceeds at the end of the term? 

Replies (2)
As per Section 145(1) PGBP and Other sources income are taxable as per method of accounting followed by the company I.e. Acccrual
Thank you so much for your kind reply...


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