Accrued interest inclusion in net wealth: compounded interest on savings certificates and cumulative deposits counts as taxable wealth. Accrued interest on instruments that deem interest to accrue and be reinvested, such as certain National Savings Certificates and cumulative bank term deposits under reinvestment plans, must be included in the assessee's net wealth; where interest is actually paid periodically the accrual treatment does not apply. The accrued interest is taxable on annual accrual and is eligible for the Wealth-tax Act deductions available for bank deposits and savings certificates.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Accrued interest inclusion in net wealth: compounded interest on savings certificates and cumulative deposits counts as taxable wealth.
Accrued interest on instruments that deem interest to accrue and be reinvested, such as certain National Savings Certificates and cumulative bank term deposits under reinvestment plans, must be included in the assessee's net wealth; where interest is actually paid periodically the accrual treatment does not apply. The accrued interest is taxable on annual accrual and is eligible for the Wealth-tax Act deductions available for bank deposits and savings certificates.
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