Method of accting

This query is : Resolved

dattatreyahg (Querist)
Follow

05 July 2012 I opened a SAVINGSPLUS a/c in SBI six months back..Tenure is 5 years. They have shown ACCRUED interest in a statement as on 31 march 2012 in a loose sheet, but not in passbook.Should I ignore this as income of f/y 2011-12(as I am following CASH method of acctng) and show entire interest for 5 years at the time of redemption? If yes,should I treat this interest exempt upto Rs. 10,000 for f/y 2012-13(may be in subsequent years also if same exemption cotinues) while computing total taxable interest at the time of redemption? SBI staff have no clear answer

U S Sharma

U S Sharma (Expert)
Follow

22 August 2012 bank interest should be accounted on incurred basis, as if any TDS incident happens, it would get lapsed if you dont show the same in your ITR yearly.