ITR
FD interest in AIS versus accrued interest
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
Banks may report interest paid or credited, while your certificate may show accrued interest. You must report interest on a consistent basis, usually accrual for cumulative deposits, and explain differences.
Provisions and law
- Sec 56 (now Sec 92)Income from other sources includes interest
- Sec 285BB (now Sec 510)Annual Information Statement of reported transactions and taxes
- Sec 194A (now Sec 393)TDS on interest other than securities
Analysis
If the certificate shows accrued interest of ₹48,000 for the year and AIS shows ₹40,000 of interest paid, report ₹48,000 on accrual. In the year of maturity, AIS may show a large amount including earlier years; report only the part not taxed before. Claim TDS in the year you report the related income.
Conclusion
- Get interest certificates from all banks
- Decide the basis: accrual or receipt, and stay consistent
- Reconcile with AIS and note the reasons
- Report interest and claim related TDS
A Savvy can do this for you
Pre-filing reconciliation of AIS, TIS, 26AS and Form 16
₹999
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.