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Interest on saving bank account

03 October 2019

my client is proprietor,he wants to show interest on saving account in P&L and balance of bank account in assets?My view is interest should be shown in itr as income from other sources and bank account balance not in accounts, what will be appropriate?

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3 Replies

Akash Agrawal (47 Points)
Replied 03 October 2019

Hello Priti,

You are absolutely correct. Interest on saving account is need to be classify under IFOS and for the same deduction can be claim under Chapter VI A. Now for disclosing bank account balance it should be disclose in balance sheet.

Thank u and all the best

sabyasachi mukherjee (26047 Points)
Replied 03 October 2019

Yes priti
its absolutely correct.
Sec 56(2)
dividends
income from winning from lotteries
income by way of interest on securities
income from machinery.

Kapadia Pravin (17249 Points)
Replied 04 October 2019

@ Priti
As per query your client is proprietor of any business or profession concern.
For proprietory concern he must be having Curren Account in bank for business.

So in balance sheet of proprietory concern , this personal Saving Account won't be coming.

So interest on SB account will be shown under IFOS and SB bank account balance won't form part of proprietory concern BS .