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@Subramanya*strong text*, i would like to add some little light on this.
Example
_Withholding Tax = 15%,
So assuming a client A has earned interest of 1000 on his savings account.
Then W.H.T = 0.15*1000 = 150_
Therefore this W.H.T of 150 is deducted from the interest earned for that month.
=> 1000-150 = 850; Which now is the net interest earned, and it is this interest that is posted to the client's savings.
The W.H.T of 150 is then posted to its appropriate ledger, meaning that we should be able to map this to a certain ledger accordingly.
Question
Assuming, for MFI A, interested is calculated on monthly basis but posted on quarterly bases, will this logic still be possible? W.H.T is deducted monthly and the computed interest (i.e Net interest, with W.H.T already deducted) is posted on Quarterly or yearly basis?
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