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Download Core Entities Version-1.0 9NT1425
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In Cash-basis tax is computed and deducted when the actual interest is paid to the customer. Example Branch Accountno Principal Booking date Interest rate Liquidation frequency Maturity date Interest amount for financial year CHO AC0001 200000 1-May-08 10% Quarterly 31-Jan-09 15000 CHO AC0002 100000 1-May-08 10% Quarterly 31-Jan-09 7500 Liquidation schedule Date Account no Liquidation amount AC0001 5000 Total interest earned TDS to be deducted @ 10% NIL 31-Jul-08 7500 AC0002 2500 AC0001 5000 NIL 500 31-Oct-08 7500 AC0002 2500 AC0001 5000 250 500 31-Jan-09 7500 AC0002 2500 250 During the first month liquidation tax is not deducted as the interest earned is 7500. The following tax related entries are passed during subsequent liquidation cycles. On 31-Jul-08 NIL On 31-Oct-08 DR CUSTOMER 750 CR TAX_PAY 750 The total tax amount payable on 31-Oct-08 is 1500. The tax applicable on the current liquidation amount 7500 is 750. The tax applicable for the previous period (31-Jul-08) is 750. This amount will be recovered as part of batch tax recovery process. On 31-Jan-09 DR CUSTOMER 750 5-82
