Answer

1. F

   Facts

   TDS credit is given for the year in which the income is assessable. If you offer interest only at maturity, the yearly TDS does not line up with your income and mismatches arise.

2. P

   Provisions and law

   • Rule 37BA, Income-tax Rules 1962 (now Rule 203, Income-tax Rules 2026)TDS credit is given on the basis of the deductor's statement; it can be claimed by another person whose income it is, on declaration, and in the year the income is taxed.
   • Sec 199, Income-tax Act 1961Credit for tax deducted is given to the person whose PAN is reported, for the year in which the income is assessable (2025 Act number to be confirmed).
3. A

   Analysis

   The cleaner approach is to report interest on accrual every year, matching bank TDS and 26AS. If you have been reporting at maturity, the rules allow credit in the year the income is taxed, but CPC matching may still flag it. Switching to yearly reporting reduces notices.

4. C

   Conclusion

   1. 1Check how you have reported FD interest so far.
   2. 2Prefer yearly accrual reporting matching the bank.
   3. 3Claim TDS in the same year as the income.
   4. 4Keep bank interest certificates.
   5. 5Explain any one-time switch in your records.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.