Acrrued interest - taxability

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Dear Learned friends kindly clarify me the following. Suppose I received bank FD interest 3 lacs out which 2 lacs is actually paid and 1 lac is accrued. (TDS deducted on 2 lacs for this FY) I am reporting my total income as 3 lacs on a/c of other sources and filed ITR. How to account for the next year the 1 lac as income then i might be double taxed as it would be added in total income and also  TDS might deducted 10% as per bank

thanks

GR Babu

Replies (3)

Dear babugr , 

If u are following Cash system of accounting for incomes , you can definately show income of intrest on FD in the year of receipt ,further credit of tax can be availed in next year.

if u wanna more clarification read section 145(1) of the ACT.

regards

Thanks for your quick response, I wish to clarify I am an individual having income from pension and bank FD interest. hope I made myself clear.

 

if u are having only such type of income, definately it would be better for u to follow Cash system of accounting instead accrual basis. 


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