IT Return - Interest Income under which Account?

Originally posted by : JITENDRA SINGHVI
	Whether you Shows in capital account or p&l..the effect will ultimately come in capital account...And Shows as other income in ITR.Claim deduction under 80EE if it is from FD.

80EE is Interest on loan taken for residential house property. How come interest income from FD can be claimed under this?

For accounting purpose:

Directly to capital account (if it is not out of business/ not related to business)

Indirect Income (if it is related to business)

For taxation purposes:

If already credited to Profit & Loss account under Indirect Income and it relates to Business:

then no further adjustments required

If already credited to Profit & Loss account under Indirect Income and it does not relates to Business:

then deduct from PGBP and add to IFOS

if credited to capital account

show under IFOS in ITR.

Hope this clarifies.