This would happen, for example, in case of a bank fixed deposit that pays cumulative interest. While interest on such deposit will accrue on a periodic basis, the depositor will not receive it till the deposit matures and he withdraws it. Therefore, if the depositor has to pay income tax on accrued interest, he must pay the tax from income other than the accured interest. If the depositor does not have another source of income, or if that source is not sufficient, how will he pay the tax?
2006-08-22
02:41:18
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7 answers
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asked by
DAT
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Business & Finance
➔ Taxes
➔ India