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Whether TDS on reinvestment term deposit should be made on accrual basis, which is quarterly, or once in a financial year ?

QuestionsCategory: Income TaxWhether TDS on reinvestment term deposit should be made on accrual basis, which is quarterly, or once in a financial year ?
Profile photo of NyraPareekNyraPareek Staff asked 4 weeks ago

Whether TDS on reinvestment term deposit should be made on accrual basis, which is quarterly, or once in a financial year ?

1 Answers
Profile photo of SaraRaoSaraRao Staff answered 4 weeks ago

Tax has to be deducted at source at the time of credit of interest to the account of the payee or at the time of payment thereof, whichever is earlier. If credit is given to the account of the payee or payment is made to him annually, the tax may be deducted annually. It may be clarified that a credit to interest payable account or suspense account, etc., is also taken as credit to the account of the payee, even though this credit is not reflected separately in the payee’s account.