POSTED BY July 28, 2012 9:55 pm COMMENTS (2)ON
Banks give statement of interest paid/accrued on bank savings account/Fixed deposits for the financial year. Suppose if the FD is for one year from say, Aug 2010. As of MAR’11 the interest accrued for the period Aug’10-MAr’11 is given by the bank. And tax to be paid on this accrued amount. Now when the FD matures by Aug’11, the interest is paid. And in the year end statement, how does the bank show this amount. Will it be shown as the interest paid minus the last year’s accrued amount, or total interest paid?