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Clarification Needed: Reporting Accrued vs Paid FD Interest in ITR

503 views 6 replies

Rakesh

Beginner

31 Points Posted on 08 July 2026

We usually file our returns using the fixed‑deposit interest shown in the AIS. My question is whether it is correct to file the return using only the accrued interest shown in the bank’s annual interest statement, without including the interest paid. The reason I’m asking is that the accrued interest will appear as “interest paid” in the following year my understanding. please correct me if I am wrong. For example, in the previous financial year someone reported only the bank’s accrued interest, and in the current year’s filing he will again report only the accrued interest. Please clarify.

Note: The AIS shows the total of interest paid plus accrued interest.

Thank you for your guidance.

Replies (6)

Quick Summary

A discussion clarified whether FD interest should be reported in the ITR based on accrued interest alone or the total shown in AIS. Experts advised that the AIS or bank interest certificate is generally the correct basis, as it reflects both paid and accrued interest, with adjustments carried through Form 26AS.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212216 Points Posted on 08 July 2026

'Interest paid' usually includes the interest paid for the current year also. So, that part needs to be included in the calculation along with accrued interest.

Rakesh

Beginner

31 Points Posted on 08 July 2026

Thanks, Does that means AIS FD interest amount is the correct amount we should report yearly. That includes both interest paid and accural interest. Please advise.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212216 Points Posted on 08 July 2026

Generally correct, unless there is misreporting by mistake.

Kawai

Retired Executive

60 Points Posted on 08 July 2026

26AS of Q1 adjusts the accrued interest of the previous year, and hence one should go by the 26AS statement, and it will also tally with the Bank's interest certificate. Current year interest is reported by the bank in 26AS/Interest certificate and, in the same manner, will get adjusted in the 26AS.

Rakesh

Beginner

31 Points Posted on 08 July 2026

Hi @ Kawai,

Only AIS amount (interest paid+accural interest) is matching with the sum of interestpaid+Accural interest in the bank statement. In form 26AS, few interest paid and some accural are not considered.
Do you know what to do in this case?

Thanks