TDS on FD on Accrual or Payment Basis?

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  1. bhanu_ssm

    bhanu_ssm New Member

    Suppose I deposit 2 lakh in october 2015 @7.5% FD rate for 1 year then will it get TDS deduction or not I think in 2015-16 interest will be less than 10k but when FD get completed ,total interest will be 10+
    Also in ITR for FY 2015-16, intrest accumulated (but not paid as FD still running ) till march 16, need to be shown in ITR Or full interest @end of FD should be shown in ITR for FY 2016-17
  2. rudrabose

    rudrabose Active Member

    1. TDS wont be deducted as the interest earned by you in 2016-17 is less than Rs. 10,000
    2. The Interest is required to be disclosed on accrual basis and not full interest in next year

    INVESTURU Member

    Dear bhanu_ssm, you can get interest certificate from your concerned bank, or if you have net-banking facility, then get that any time. In this certificate, entire interest, whether it is related to payment basis/ mercantile or accrual basis. This is best option for you, according to my perspective.
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