TDS on FD on Accrual or Payment Basis?

Share
Share This Thread
  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 ....as 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
     
  3. INVESTURU

    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.
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Tax on RD in year of Accrual or Payment of Interest? Income Tax Aug 14, 2015
Tax on FD Interest on Accrual or Receipt basis? Income Tax Oct 19, 2015
Tax on Interest on FD on Accrual or Receipt basis? Income Tax Aug 11, 2015
PPF Interest Accrual for part of the year Income Tax Jan 7, 2015
Apeeal for interest on late payment of TDS Income Tax Feb 2, 2018