LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Interest income in p&l account statement

Harshit (Arbitrager) (215 Points)

04 June 2014

Hi, I am making a profit & loss acoount statement, I have a query Should I be including "Interest from FD, Interest from Savings account and Dividend from shares" as income from other sources? Thanks, Harshit Patel

Reply
Follow
Share

5 Replies

CA Raj Doshi (Practising CA) (8723 Points)
Replied 04 June 2014

These 3 items are receipts of capital nature so this is an addition to capital. So while preparing the financial statements , the capital account will get credited with these 3 items. However , while preparing the income tax return , all these 3 shall come under income from other sources.

Dipendra Prasad Poudel (Article Assistant ( Internal Audit) ) (578 Points)
Replied 05 June 2014

Firstly, please clarify the nature of business of company of which you are making P/L account.

If the company is non-finance company the above mentioned interest and dividends should come under the heading of " Other Incomes"

If the company is of finance nature then it shall come under " revenue from operations"

Please wait for the response of expert or working professionals.

Regards

Harshit (Arbitrager) (215 Points)
Replied 05 June 2014

Hi, I am doing Arbitrage business (Stock trading). Since this all INCOME is not from business and it is from investment. Should it be included In P&L account statement. Thanks, Harshit

Harshit (Arbitrager) (215 Points)
Replied 05 June 2014

Hi, I am doing Arbitrage business (Stock trading). Since this all INCOME is not from business and it is from investment. Should it be included In P&L account statement. Thanks, Harshit