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Due interest to be shown in b/s ??

Niti Kanodia (Student) (43 Points)

24 May 2015

I have given a loan of 4 lacs to my brother on 23 Feb 2014. He paid interest on it in A.Y 2015-16 i.e in next year after deducting TDS of 7180 rupees. My question is while filing return for A.Y. 2014-15, should i show interest due on the loan for 1 month (march 2014) in the balance sheet of 31st march 2014 ? If yes, should i add it in loan amount or show it seperately ?

Note- 1) No TDS has been deducted in A.Y.2014-15

2) My brother has not shown any O/S Interest for March month in his balance sheet ending on 31st march 2014...

Please help me with my concepts......THANK YOU !

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2 Replies

dig vijay (ok) (151 Points)
Replied 04 June 2015

Ofcourse you should account for the one month interest, since you expect to be received in near future. also, the. Same shall be accounted separately as Interest Outstanding and not to be clubbed in loan amount

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Sonakshi Mangla (Employee) (310 Points)
Replied 05 June 2015

Agree with Dig Vjay. We follow accrual concept of accounting so the income of the respective year should be shown in that year only. So int for the month of March should be shown as interest income.