The Income-tax Department has recently advised the taxpayers to file correct details of Interest income in Income-tax Returns. As Income-tax Return for AY 2014-15 (FY 2013-14) can not be filed/revised after 31st March 2016, Taxpayers are advised to revise the return before said date to include the Interest Income.
Some FAQs are provided below to help you.
Q1. What type of Interest Income is taxable?
PPF Interest and Interest on Tax Free Bonds is exempt from Tax. Taxpayer usually consider that Interest on NSC and Bank Saving Account Interest are exempt, but they are not exempt. Interest received on NSC is taxable, and same is allowed as deduction u/s 80C if same is reinvested and not withdrawn. Bank Saving Account interest is also taxable, a deduction is provided for same upto Rs 10,000/- u/s 80TTA, but same is required to be declared in the return. Please note that Interest received on Fixed Deposits, Recurring deposits, Infrastructure Bonds, Senior Citizen Saving Scheme are always taxable.
Q2. How to know if I have missed to enter my interest income?
One can avail the details of Interest income from Form 26AS, where Interest Income on which TDS is deducted can be found. Also Interest Income where Form 15G/15H is provided is also available in Form 26AS.
It may happen that TDS is not deducted on Interest where you have submitted Form 15G / 15H. these details of such Interest can be found in Form 26AS. There may be other Interest income on which no TDS is deducted and as a result it is not included in your form 26AS, such Income should also be included. The details of such Interest Income can be sought from your Bank Statements or other sources.
One should check if these Income’s are included in the original return. You can get details from your myITreturn login if filed from myITreturn. In other cases, you can details of your Original Return from your Income-tax Login @ www.incometaxindiaefiling.gov.in
Q3. How to file a revised return?
You can revise your return of income from myITreturn with ease.
Here is a step wise guide to file IT return: Income tax return filing presentation
The page where it asks for whether the return is Original or Revised, you just need to select Revised option and enter old acknowledgment number.
Q4. Why should I file a revised return?
If you have wrongly missed something while filing your Original Return, you should file a revised return after including/correcting same. E.g. If you have missed to include your Bank Fixed Deposit Interest Income, you should include same and file the revised return.
Do remember to collect the correct details of Interest received or credited in your bank accounts and include the same while filing Income-tax returns in case your total Income exceeds the maximum amount of not chargeable tax limit.
Although the last date of filing returns for AY 2015-16 is 31st March 2017, Taxpayers are advised to file their Income-tax return for AY 2015-16, by including taxable interest income, if any till 31st March to avoid penalty u/s 271F of Rs.5000.
In case of queries, CBDT has asked the taxpayers to contact Assessing Officer or dial the toll-free number 1800-180-1961 for further details. In case, you have any queries, relating to this topic or any other Income-tax related topic, reach out to us at myITreturn@skorydov.com