Income on Fixed Deposit
This query is : Resolved
19 August 2010
Suppose FD is for Rs.1lac @10% p.a. for 3 years. Do we declare the accrued interest on a yearly basis in the return of income or do we show it in the year of maturity? Please explain in detail.
Suppose FD is for Rs.1lac @10% p.a. for 3 years. Do we declare the accrued interest on a yearly basis in the return of income or do we show it in the year of maturity? Please explain in detail.
Aditya Maheshwari
(Expert)
19 August 2010
It should be accrued year to year.
19 August 2010
Treat the interest on Accrual Basis.
19 August 2010
Accrued interest income on yearly basis.
19 August 2010
You have booked interest accured basis
entry will be made
Interst Accured on FD (Asset) Dr
TO Interest accured but not recd (income)Cr
You have maturity value of FD
you can split it yearwise according to days.
entry will be made
Interst Accured on FD (Asset) Dr
TO Interest accured but not recd (income)Cr
You have maturity value of FD
you can split it yearwise according to days.
20 August 2010
thanks, but can u tell me how we can show it in computation of income on yoy basis.
20 August 2010
thanks, but can u tell me how we can show it in computation of income on yoy basis.
Aditya Maheshwari
(Expert)
20 August 2010
You do not have to compute. You should ask the banker to issue accrued interest certificate at the end of every year.
20 August 2010
AGREED WITH MR. ADITYA, YOU CAN DEMAND INTETEST CERTIFICATE .
YOU HAVE TO SHOW IN COMPUTATION OF INCOME IN INCOME FROM OTHER SOURCES .
YOU HAVE TO SHOW IN COMPUTATION OF INCOME IN INCOME FROM OTHER SOURCES .
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