Taxation of interest income
Atharv Sankliya (1354 Points)
13 April 2023
on which basis income from interest is taxable received basis or due basis
5 Replies
NARENDRA
(ACCOUNTS MANAGER)
(1994 Points)
Replied 13 April 2023
Received Basis , ..... ......... but if you given a loan or making fixed deposit in bank, they are credited you interest, but not paid .....on that particular time you will have to club that interest in income .
Pranjal Gupta
(141 Points)
Replied 17 April 2023
In India, income from interest is generally taxable on an accrual basis, i.e., it is taxable in the year in which it accrues, and not on a received basis. The accrual basis means that the income is taxable when it becomes due or is earned, irrespective of whether it has been actually received or not.
This means that if you have earned interest on a fixed deposit or a bond in a particular financial year, the interest income will be taxable in that financial year, even if the interest has not been credited to your bank account or received in cash.
Atharv Sankliya
(1354 Points)
Replied 18 April 2023
But what if the assessee is maintaining the books at cash basis accounting
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