Interest income in AIS

AIS of the assesse for the year 20-21 is showing an interest income which is not there in 26AS as no TDS has been deducted on the same. We believe that full interest will come in 26AS next year, when FD will mature and TDS will be deducted on this. Now while filing ITR for 20-21, should we take this income in current year based on AIS. If we do so, we will not consider this as an income again next year and will have a mismatch with 26AS.

What is the solution for this? In which year should we report this as an income?

Replies (3)
Quick Summary
This discussion addresses a common query regarding interest income appearing in the AIS but not in Form 26AS due to no TDS deduction. The core issue is determining the correct financial year to report this income. While AIS suggests current year inclusion, the interest will only mature and have TDS deducted next year. Reporting it now could lead to a mismatch with 26AS and double-counting next year. The question is whether individuals must report income on an accrual basis or if a cash basis is permissible, and what the correct approach is to avoid discrepancies.

Tds rule says on receipt or accrual which ever is earlier.

It is from the perspective of considering income...Is it compulsory to consider income on accrual basis or taxpayers have a choice of considering it on Cash basis.

Any other views on this.. Is it compulsory for individuals to follow accrual basis for their incomes.

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