Is Income Tax levied on Accrued Interest as well?

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  1. Bipin Vayada

    Bipin Vayada Member

    Dear Sir

    I would like to know whether accrued interest on TDR is part of other income for tax purposes for the Assessment Year 2016 - 2017 ( interest from 01-04-2015 to 31-03-2016)

    Regards

    Bipin Vayada
     
  2. Manoj Mehra

    Manoj Mehra Active Member

    Yes, Tax would be levied on Accrued Interest as well.
     
  3. Bipin Vayada

    Bipin Vayada Member

    Dear Mr Manoj

    Thanks for your quick response.

    I would also like to know whether a person who was NRE for many years and during that period I have opened various TDR before leaving the job and return to India for the rest of the Life, many TDR are going to mature in the year 2016 and 2017.

    May I request you to please let me know whether interest accrued on this is taxable.

    Regards

    Bipin Vayada
     
  4. Manoj Mehra

    Manoj Mehra Active Member

    Yes, the interest accrued would be taxable as per the income tax slabs
     
  5. Bipin Vayada

    Bipin Vayada Member

    Dear Mr Manoj

    Thanks for your quick response.

    I was informed by my friends that tax is not levied on all those TDR which were opened during my stay abroad, it will be taxable only after the maturity and amount is transferred to normal account.

    Even bank with whom I have TDR are not deducting TDS on these TDR, they are going to transfer this amount to normal account after maturity and start deduction of TDS in normal account.

    Please clarify my doubts.

    Regards

    Bipin Vayada
     
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