Annual Information Statement – Withdrawal of deposits under National Savings Scheme (NSS)
Till now, form 26AS being an annual tax statement contained information relating to taxes already paid by the taxpayer like tax deducted/ collected at source; self-assessment tax paid; advance tax paid etc.
However, Finance Act 2020 inserted section 285BB to the Income Tax Act which introduced ‘Annual Information Statement’. Annual Information Statement (AIS) covers wide information of the taxpayer as compared to Form 26AS.
Information contained in AIS is bifurcated into 50 different categories. One such category under AIS is ‘withdrawal of deposits under National Savings Scheme’.
Coverage of AIS information category ‘Withdrawal of deposits under National Savings Scheme-
‘Withdrawal of deposits under National Savings Scheme’ is taxable income according to the Income Tax Act. Thus, any person responsible for paying the amount is liable to deduct TDS under section 194EE of the Income Tax Act. TDS @10% is deductible at the time of payment of the withdrawal amount.
After deducting the TDS under section 194EE, the deductor is required to furnish quarterly TDS return in Form 26Q and also issue a TDS certificate, to the deductee, in Form 16A.
Information source for AIS information category ‘Withdrawal of deposits under National Savings Scheme-
For the said information category, ‘Annual Information Statement’ will take the information furnished by the deductor in quarterly TDS return in Form 26Q.
AIS processing for the information category ‘Withdrawal of deposits under National Savings Scheme-
Information taken by AIS from the TDS return will be processed under AIS in the following manner-
1. Withdrawal amount from the deposit under National Savings Scheme and reflected in TDS return will be held taxable in the hands of the recipient; and
2. The amount will be taxable under the head ‘Income from other sources’.
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Annual interest accrued from deposit under NSS1987 is reflected in the AIS under Income from other sources. Is it exempt from tax ? If yes under which clause. If not how to account for ? since I have not withdrawn any amount from my Account.
Annual interest accrued from deposit under NSS1987 is reflected in the AIS under Income from other sources. Is it exempt from tax ? If yes under which clause. If not how to account for ? since I have not withdrawn any amount from my Account.
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Since the year 1988 annual interest on NSS 87 got absorbed with balance outstanding. Withdrawals were finally taxed whether principal or interest without any bifurcation. Now a complication has arisen due to inclusion of NSS87 interest separately in AIS through SFT. If it is to be taken as taxable income it becomes double taxation at the time of withdrawal again. Please arrange for clarification from CBDT that NSS 87 interest or balance will be taxable only if withdrawn by the investor. Please also raise a professional query for the benefit of all through AIS PART B PORTAL.
AIS statement shows interet on nss87 deposits is taxablel . Is it not double taxation?
Whether annual interest of NSS is taxable ? If not under which section ? If it’s taxable then at the time of withdrawal we shall pay tax only on principle amount ? Kindly respond as I hv to file my ITR immediately please. Thanks n regards
Annual interest accrued from deposit under NSS1987 is reflected in the AIS under Income from other sources. Is it exempt from tax ? If yes under which clause. If not how to account for ? since I have not withdrawn any amount from my Account.
If withdrawals from NSS 1987 are taxable, should we stop adding interest accrued in the FY 2021-22 (AY 2022-23) to “Income from other sources” as otherwise it would result in double taxation to the taxpayer.
If Annual interest accrued from deposit under NSS1987 is being reflected in the AIS under Income from other sources. Is it exempt from tax ? If yes under which clause. If not how to account for the double taxation while withdrawing the deposit from the scheme.
Sir
where the receipts from NSC Maturity will be reflected in AIS