Interest earned on bank FDs to be disclosed in ITR on paid OR paid and accrued basis?

Sanjit (not applicable) (117 Points)

18 December 2020  

As i understand it, in case of term deposits with quarterly/half yearly payouts to a depositholder, the accrued interest earned as on 31st March on  a particular deposit would subsequently be paid out  at the end of the quarter/6 month tenure of  such deposit........So what should be declared to tax is the interest paid rather than the interest paid plus accrued.  Is this correct to avoid part of the interest getting taxed twice

Can you also explain to me what happens if interest is payable on maturity?  Should i declare interest accrued to tax each financial year or directly when it is received on maturity?

Please help me in resolving this issue