Dear Friends,
I invested in a FDR on 30.8.14 Rs 600000/- for 1 year.........maturity value being 655000/- wriiten in FDR.
It means Interest for 1 year is 55000/- from 30.8.14 to 31.08.15.
Now I am filing ITR for FY 2014-15 (AY 15-16) .
What should be my Interest income?
The accrued interest till 31st March 2015 will be taken into acount and the bank will issue a certificate on this to you (Form 16A)
take interest for fd income from 31/8/14 to 31/3/2015 calculated on day basis
It will be hassle-free to follow form 26AS. If Interest is not displayed there for any reason, then calculate on the basis of days or weeks either way is fine as there will approximation on both cases. On the basis of days (A2 + S30 + O31 + N30 + D31 + J31 + F28 + M31 = 214 days), 55,000*214/365=32,246.58 so 32,247 (approx)
Alternatively,
For other sources you can follow cash basis or mercantile basis. So you may chose to show whole interest of 55,000 in next year.
So considering Total Income of each year, decide how you want to book interest.
It depends on which accounting system you follow - mercantile or cash basis.
If you follow mercantile then collect balance and interest certificate from the bank to know the FD balance as well as interest on your FD as on 31st march. Accordingly record the same.
If you follow cash basis, then full interest will be considered in next year
CAclubindia
