Income from fixed deposit

The interest certificate given by bank shows interest paid on fixed term deposits and on saving account. However, the internet accrued on the fixed deposit is not received by me but is paid by the bank on the maturity of the deposit. Now while filing ITR-4 do we need to show the entire interest given in the interest certificate as "income from other sources"  or we need to show only the interst that is actually credited in the saving account or we have to show the total interest paid by the bank on saving account +on term deposit, though it is reinvested by bank and is paid only on maturity.

Replies (8)
You need to show interest income as per interest certificate received from Bank under income from other sources on accrual basis
But we do not get the interests on fixed deposits till its maturity, still we need to show it as income?
Yes, you can show interest income in ITR on accrual basis as per income tax rule due to income already accrued

You can show it on either receipt basis (Cash basis) or on accrual basis. 

Thanks. If I decide to show on accrual basis based on the interest certificate given by banks then, do I need to take into account only the last year's interest for calculating the income from other sources on the year when the deposit is matured and I actually get the entire interest for the given period of 5 years?
yes. u get the whole, but taxed only for last yr interest. Follow accrual basis to avoid IT litigations.

Yes. If considered on accrual basis, then take Interest figure as per the certificate issued by Bank for the FY 2017-18.

 

yes you have to show under accrual basis

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