Taxation of interest income

Received Basis , ..... ......... but if you given a loan or making fixed deposit in bank, they are credited you interest, but not paid .....on that particular time you will have to club that interest in income   .

In India, income from interest is generally taxable on an accrual basis, i.e., it is taxable in the year in which it accrues, and not on a received basis. The accrual basis means that the income is taxable when it becomes due or is earned, irrespective of whether it has been actually received or not.

This means that if you have earned interest on a fixed deposit or a bond in a particular financial year, the interest income will be taxable in that financial year, even if the interest has not been credited to your bank account or received in cash.