Interest income in p&l account statement

1739 views 5 replies

Harshit

Arbitrager

215 Points Joined February 2011

Hi, I am making a profit & loss acoount statement, I have a query Should I be including "Interest from FD, Interest from Savings account and Dividend from shares" as income from other sources? Thanks, Harshit Patel

Replies (5)

CA Raj Doshi

Practising CA

8954 Points Joined December 2013

These 3 items are receipts of capital nature so this is an addition to capital. So while preparing the financial statements , the capital account will get credited with these 3 items. However , while preparing the income tax return , all these 3 shall come under income from other sources.

Dipendra Prasad Poudel

Article Assistant ( Internal Audit)

578 Points Joined September 2013

Firstly, please clarify the nature of business of company of which you are making P/L account.

If the company is non-finance company the above mentioned interest and dividends should come under the heading of " Other Incomes"

If the company is of finance nature then it shall come under " revenue from operations"

Please wait for the response of expert or working professionals.

Regards

Harshit

Arbitrager

215 Points Joined February 2011

Hi, I am doing Arbitrage business (Stock trading). Since this all INCOME is not from business and it is from investment. Should it be included In P&L account statement. Thanks, Harshit

Harshit

Arbitrager

215 Points Joined February 2011

Hi, I am doing Arbitrage business (Stock trading). Since this all INCOME is not from business and it is from investment. Should it be included In P&L account statement. Thanks, Harshit