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Method of accounting for income from other sources

20 May 2021

I have interest from securities and other interest etc. that falls under the head income from other sources.

would like to know if I have a choice to account it on cash basis. please also mention the relevant tax clause.

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6 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 20 May 2021

Yes you can account it on cash basis also

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Sivaramaraju G (Learner) (2398 Points)
Replied 21 May 2021

Income to be computed either on the basis of cash or mercantile system of accounting [Section 145(1)]

Income chargeable under the head "Profits and gains of business or profession" or "Income from other sources" shall, subject to the provisions of section 145(2)(ICDS), be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee.