Accrued interest for income tax return
This query is : Resolved
Vinayak Patwardhan
(Querist)
20 June 2015
I have Fixed Deposits with bank. Upto last year bank was providing interest certificate for actual interest paid. This year they have provided interest certificate for interest paid & accrued interest. Also, bank has stated in Interest certificate that TAX is not deducted on Interest. So, till last year I was showing interest as per interest certificate i.e. interest paid. Now, whether to show only interest paid in income tax return for this year or accrued interest also to be shown as part of total income??
One expert has opined that you have to follow only one method i.e. receipt basis or accrual basis.
Pls advise.
One expert has opined that you have to follow only one method i.e. receipt basis or accrual basis.
Pls advise.
Nikhil Kaushik
(Expert)
20 June 2015
you can continue showing on cash/receipt basis.
it is not that you cannot change the method but you will have to ensure that no income escapes taxation. Generally moving away from receipt to accrual basis doesn't cause any problem as it results in preponing the taxation income (so taxmen have no objection)
it is not that you cannot change the method but you will have to ensure that no income escapes taxation. Generally moving away from receipt to accrual basis doesn't cause any problem as it results in preponing the taxation income (so taxmen have no objection)
Rupesh Jain
(Expert)
20 June 2015
you can continue the current method of intt income. there is no problem in change in method. its better not change the method
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