Accrued interest on TDR

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Jetendra Saini (Querist)
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05 September 2020 Sir,
I would like to know the treatment of Accrued interest income in case of following TDR:

Date of Deposit: 01.01.2017
Date of Maturity: 01.01.2020
Accrued interest as on 31.03.2017:X
Accrued interest as on 31.03.2018:Y
Accrued interest as on 31.03.2019:Z

X is included in Y and Y is included in Z.

How accrued interest will be calculated for the FY2017-18, 2018-19,2019-20.

Please help me regarding this. Thanks.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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05 September 2020 Every year bank will credit accrued interest on FD end of financial year ,you can obtain interest statement from bank on same bank will do tds , if you give form 15G/H same will reflect in 26As

Jetendra Saini

Jetendra Saini (Querist)
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05 September 2020 Sir, what will be the accounting treatment if interest is only payable at Maturity. (being a petty principal amount, No TDS to be deducted)

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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05 September 2020 As per income tax you have to recognise interest in the year which accrued same can be added to FD /TD , accrued interest is taxable as income from other sources even though interest is paid at maturity.
Each year extent of tds adjusting
fDR/Tdr a/c dr
TDS receivable Dr
interest on FD

On maturity

bank dr
fd/Td Cr

Jetendra Saini

Jetendra Saini (Querist)
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05 September 2020 Thank you sir. It helped me a lot.

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