Q.Draft a letter, on behalf of Bharat Plastics Limited, forwarding the annual interest due to Mr. Ramesh Gaikwad on his fixed deposit of Rs. 40,000 at 9% per annum, after deducting tax at source under Section 194A of the Income-tax Act, 1961.

The letter must state the gross interest, the tax deducted at source, and the net amount actually remitted, so the depositor's own tax records tally exactly.

BHARAT PLASTICS LIMITED

Registered Office: Chikalthana Industrial Area, Aurangabad – 431006

CIN: U25200MH2011PLC176543

Date: 9th May

To,

Mr. Ramesh Gaikwad,

18, Osmanpura,

Aurangabad – 431001

Dear Sir,

Sub: Payment of interest on your Fixed Deposit Receipt No. FD/2025/0034, for the year ended 8th May

We are pleased to enclose our cheque No. 331209, drawn on Union Bank of India, Aurangabad Main Branch, for Rs. 3,240, being the net amount of interest due to you on your Fixed Deposit Receipt No. FD/2025/0034 of Rs. 40,000 at 9% per annum for the year ended 8th May, after deducting tax at source of Rs. 360 under Section 194A of the Income-tax Act, 1961. Our TDS Certificate (Form 16A) for the amount deducted will follow separately, as required by law.

Your deposit continues on its original terms and will next fall due for interest on 8th May next year.

Thanking you,

Yours faithfully,

For Bharat Plastics Limited

(Nitin Deshmukh)

Company Secretary

Encl: Cheque No. 331209 for Rs. 3,240

This letter states the gross interest, the TDS deducted, and the net cheque amount separately, so the depositor's own tax records tally exactly with what the company has remitted and deducted.

Students sometimes state only the net amount paid and omit the gross interest and the TDS figure — all three numbers should be shown separately so the depositor can verify the arithmetic and claim TDS credit correctly.