interesr on deposit

As per section 193 and 194 A  of the Income tax act 1961 at time of Credit  of such income to account . 

please confirm with others also. 

1. Income tax act permits two types of methods for accounting income. One is the Cash System and the other is the Mercantile (accrual) type of accounting.
2. Now assessee's are allowed to show account their income based on whichever the method convenient for them. In most of the cases, the Mercantile system of accounting seems logical for people running businesses. In case of Individual, they would like to pay taxes at the time of receipt of income. Though it depends on individuals convenience. But there must be consistency in following either of the methods. 
3. If you follow the cash system, only at the time of receipt of interest from the bank it will be taxable. In the case of the mencantile system, it will be taxed based on how much interest has got accrued each year. 
Please correct me if the above interpretation has an alternative view.