Interest - Accrual basis / Receipt basis

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Anil (Querist)
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10 July 2008 A person has shown ACCRUED interest on NSC under the head " Income from other sources".

Can he show interest earned on Fixed Deposits of banks on RECEIPT basis? Is it necessary for him show interest on FD also on ACCRUAL basis?

The assasee is an individual having income only from Salary and Income from other sources

Yatesh Prakash Renuke

Yatesh Prakash Renuke (Expert)
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10 July 2008 Yes,
the assessee has to show the interest on FD on accrual basis.

Rupert

Rupert (Expert)
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10 July 2008 The easiest way is to ask the bank for an interest certificate which shows total interest earned for the financial year.

Anil

Anil (Querist)
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10 July 2008 Please let me know whether banks provide certificate FOR INTEREST ACCRUED on Fixed Deposit.

Satish K Sekhar.ACCA

Satish K Sekhar.ACCA (Expert)
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10 July 2008 For an individual recognizing inocme from any sources not necessarily to be on accrual basis. you can recognize interest income on reciept basis provided you are not changing from accrual to reciept according to your convenience. Yes bank will provide certificate for interest accrued.