Bank interest

While considering interest on savings account for itr purpose, should the amount credited in the year be considered or accrued basis.
Replies (8)
Quick Summary
When reporting bank interest for your Income Tax Return (ITR), a key question arises: should you declare the amount that has been credited to your account within the financial year, or the amount that has accrued? While the general practice for savings accounts is to declare interest on a cash basis (amount credited), Fixed Deposit (FD) interest can sometimes be taxed on an accrual basis.

The amount credited in the year is considered
Cash basis - Income From Other Sources
Depends on method you follow merchantile or cash basis
Receipt basis
Total amount credited in SB account in the financial year should be considered

Take the interest amount on cash basis. 

There may be ovelapping of months during year. it's at quarterly interval. But custom practice is to consider whatever is falling as credited during the financial year.
Generally interest is taxable only on receipt basis but FD interest can be taxable on accrual basis to

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