Accrued interesd query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2017 Hello, normally when I get Interest certificate from Bank, There are 2 entries, One is INTEREST PAID and the other is ACCRUED INTEREST, now during filing returns, I am confused, do I have to add both to get my FD interest income or its just the Interest paid, accrued has to be ignored?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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28 June 2017 Yes you have to add both.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2017 Hello, thanx for quick reply, as per my understanding, this years Accrued interest figures will BECOME next FYs Interest Earned, so would I not be paying tax in this year and next year on same amount if I include both?

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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30 June 2017 No not at all you may show interest either on accrual or receipt basis.

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2017 But banks dont follow the same. I have account in HDFC and every year the interest certificate that they issue has both figures and the add up both to show as total interest income, next year they do the same so do you suggest me that if I am considering RECEIVED as my income, everyyear I should follow same and ignore ACCRUE columns?? Normally I add both coz bank adds both and does TDS on added amount.