Interest on saving account and FD.

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Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2011 For personal income tax computation,
1)interst on savings account if credited by bank on 1st April 2011. Should it be consiered as income for FY 10-11 or FY 11-12?
2)Interst on FD account if credited by bank on 1st April 2011. Should it be consiered as income for FY 10-11 or FY 11-12?

Kumar Babu.G

Kumar Babu.G (Expert)

10 February 2011 In case of other sources due or receipt basis has to be consistently followed just like PGBP.
Due basis - FY 10-11 in both cases
Receipt basis - FY 11-12 in both cases

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

10 February 2011 Income under the head "other sources' can be offered either under cash basis or accrual basis on a consistent basis.In view of that, u may offer the income as per the method of accounting adopted by u.

Guest

Guest (Expert)

10 February 2011 Agtree with Mr. Warrier.

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