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Due interest to be shown in b/s ??

ITR 339 views 2 replies

Niti Kanodia

Student

43 Points Joined June 2013

I have given a loan of 4 lacs to my brother on 23 Feb 2014. He paid interest on it in A.Y 2015-16 i.e in next year after deducting TDS of 7180 rupees. My question is while filing return for A.Y. 2014-15, should i show interest due on the loan for 1 month (march 2014) in the balance sheet of 31st march 2014 ? If yes, should i add it in loan amount or show it seperately ?

Note- 1) No TDS has been deducted in A.Y.2014-15

2) My brother has not shown any O/S Interest for March month in his balance sheet ending on 31st march 2014...

Please help me with my concepts......THANK YOU !

Replies (2)

dig vijay

151 Points Joined February 2011

Ofcourse you should account for the one month interest, since you expect to be received in near future. also, the. Same shall be accounted separately as Interest Outstanding and not to be clubbed in loan amount

Sonakshi Mangla

Employee

310 Points Joined June 2014

Agree with Dig Vjay. We follow accrual concept of accounting so the income of the respective year should be shown in that year only. So int for the month of March should be shown as interest income.