Hi All,
In case of long term Fixed Deposits (say 3-4 yrs), which is a better option - Showing Interest earned in ITR on Actual Basis or Accrual Basis?
I understand that either one of the modes should be followed consistently.
Now, in case of Accrual basis - Suppose there is a 2 yr FD at 8% interest P.A. And if I show it on accrual basis in ITR for the first yr and during the second yr I make a premature withdrawal due to which the interest becomes say 7% P.A. How will the the already filed interest amount in ITR be managed then? Just asking this for knowledge!? :)