Accrued Income

Accrued income refers to that amount of money which has been booked on your name but not yet actually received. Suppose for an example, the salary for the month of march accrues as soon as the month is completed although it might be transferred in the bank account during the next financial year i.e. in april. As per the accrual concept of accounting such incomes are recorded in books of accounts and offered for taxation at vary time they have accrued and not postponed till actual receipt.In the example above salary for the month of march would be offered for taxation in the month of march and not in the next financial year or month of April.