Acrrued interest - taxability

Dear babugr , 

If u are following Cash system of accounting for incomes , you can definately show income of intrest on FD in the year of receipt ,further credit of tax can be availed in next year.

if u wanna more clarification read section 145(1) of the ACT.

regards

Thanks for your quick response, I wish to clarify I am an individual having income from pension and bank FD interest. hope I made myself clear.

if u are having only such type of income, definately it would be better for u to follow Cash system of accounting instead accrual basis.