Income on Fixed Deposit

This query is : Resolved

Nitin (Querist)
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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.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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19 August 2010 It should be accrued year to year.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 August 2010 Treat the interest on Accrual Basis.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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19 August 2010 Accrued interest income on yearly basis.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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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.

Nitin

Nitin (Querist)
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20 August 2010 thanks, but can u tell me how we can show it in computation of income on yoy basis.

Nitin

Nitin (Querist)
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20 August 2010 thanks, but can u tell me how we can show it in computation of income on yoy basis.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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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.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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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 .