Question

In case of SBI FD interest certificate show interest paid and interest accrued, what will be taken for income tax purpose.? ​

Answer 1

Answer:

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Explanation:

Accrued income means the income which has become due for a particular period but not received till the end of that particular period. At the time of Filing of income tax all incomes relating to a financial year, must be taken in to account to know the exact tax ability of the Assesses. But it is not possible that all income is received by assesses at the time of finalisation. Therefore, the need of accrued income arises.

so you have to take both interest paid plus interest accrued as per income tax ACT.