Payment of interest

Deposit is a borrowed capital. Depositor is an unsecured creditor of the company. Return in form of interest is periodically paid by the company to the depositor This letter is sent by the company to the depositor when interest on deposit becomes due. This letter gives reference of deposit receipt, amount of deposit, rate of interest, gross amount of interest, TDS deduction and net amount payable. It also contains information about interest warrant which is sent to the depositor alongwith this letter.

Sunrise Industries Limited
60/A, V S. Khandekar Road,
Vile Parle (W), Mumbai - 400056.
web: http:7/www

Tele: 022-61246871
Ref. : D 38/2012                                                                        18th April, 2012.

Mr. Sadashiv Mahadik
Sundar Niwas, Opp: International School,
Manpada Road, Dombivali (W) - 421202
Sub : Payment of interest

Dear Sir,
We are enclosing herewith interest warrant No. 3356 dated 16th April, 2012 drawn on Indian Bank, Dombivali Branch, for Rs. 18,000/­-
Details of interest payment on your deposit are given below:
Interest warrant No.
Receipt No. A/c No.
Deposit amount
Rate of Interest
Gross amount of interest
T.D.S. @ 10%
Net Amount

TDS certificate is enclosed for income tax purpose along with interest warrant.

Thanking You,
                                                                                     Yours faithfully,
                                                                           For Sunrise Industries Limited
End - Interest warrant                                                             Sd/­-
TDS certificate                                                                     Secretary

Tax Deducted at Source (TDS) : TDS means tax deducted at source: The company deducts this TDS at the time of payment of interest. Under the Income Tax Act, 1961, tax will be directly deducted at source from the interest payable on the public deposits and net amount of interest will be payable to the depositors. TDS is to be deducted at the rate of 10% if the amount of interest in a financial year exceeds 10,000 (except listed Indian companies). If PAN No. is not given then double amount is deducted as TDS. i.e. 20%.

No comments:

Post a Comment