Tax on saving interest

Thanks for the reply.

But I have some confusion. The SBI credits interest to the SB accounts on last date of June & Dec every year. So, do you meand that for FY 2013-14, I need to take into account the interest that has been credited to my account on 30.06.2013 & 31.12.2013.

Thanks in advance.

Dear ...how u can justify ...urself that how much amount will be cridited for next three months in ur account ..where u donot know what will be interest rate of caluclation even the interest rate may be changed....so it shall never be possible to account interest on accrual basis on Saving bank account...

One more thing is that if u might knwo interest is calculated on the basis of amount outstanding during the whole months and the same have been deposited before 10th of every months. hence it is not easly possible to find out interest amount....(Computation of Interest is not as simple ....as follwed by the Bank)

Thanks once again.

I now get your point. Since on FD the interest rate is fixed for the contract period, its possible to calculate intrest accrued in a FY. The same is not the case with SB A/c.