Income Tax on Fixed Deposit

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  1. Nairu

    Nairu New Member

    For a Fixed Deposit locked for a period of three years, which has the interest credited every three months, the TDS gets filed on a yearly basis if I am not wrong. My question is, should the assesse file this in the income tax returns from the first year itself OR whether he can wait until the third year when the actual amount is available to him for withdrawal?
     
  2. ZED

    ZED Well-Known Member

    If there is going to be tax deduction then you should show the income on accrual basis only. Because as per S. 199 ,tax deducted is income received.

    You should ask for TDS certificate and the interest certificate from the bank (if not already given to you).

    You should declare the income on the basis of interest certificate received by you.
     
  3. Nairu

    Nairu New Member

    Thanks ZED
     
    ZED likes this.
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