Certificate without interest income

[Sounik Mukherjee]

An individual received a TDS certificate (Form 16A) for his accrued interest income on fixed deposits for the F.Y - 2007-08. Can the individual use this certificate with out showing that accrued interest income?

[Surender Gupta]

If you wish to include the interest in your taxable in income later based on your accounting policy but you wish to avail the credit of TDS now, I think there should not be any problem.

AI Summary

TDS credit can be claimed now even if interest income not yet recognised, subject to accounting policy. An individual who has received a TDS certificate (Form 16A) for accrued interest on fixed deposits may claim the TDS credit now even if the interest has not yet been recognised as taxable income, provided the taxpayer's accounting policy contemplates later inclusion of that interest in taxable income; claiming the credit in advance is permissible where the taxpayer intends to include the interest subsequently in accordance with their accounting treatment.