Cash or accural - ios income ?

Hello,

Each category of investments would generally constitute a separate source of income, and a different method of accounting can be adopted for each such category. For instance, debentures and bonds may constitute one source, company fixed deposits another, bank fixed deposits a third source, and so on. Therefore, it is possible to account for the interest on company deposits on a cash basis, while accounting for interest on bank deposits on an accrual basis.

I think you should follow one system for both RD and FD. Usually individuals prefer to use cash basis for these type of earnings.

Originally posted by : Vishal Goel
	Hello, Each category of investments would generally constitute a separate source of income, and a different method of accounting can be adopted for each such category. For instance, debentures and bonds may constitute one source, company fixed deposits another, bank fixed deposits a third source, and so on. Therefore, it is possible to account for the interest on company deposits on a cash basis, while accounting for interest on bank deposits on an accrual basis.

Thanks for your reply.

I would like to know under which section is it covered that we can go with Different method of accounting UNDER SAME HEAD OF INCOME ?

As Section 145 clearly states that IOS & PGBP can go with Cash or accural basis. 
 

Hi Amit

its better to follow unique system of accounting, my advise is to follow Accrual basis for both