Annual Information Statement (i.e., AIS) and Taxpayer Information Summary (i.e., TIS) are the two new facilities made available by the Income Tax department to the taxpayers. In the present article, we will understand the Information category ‘Interest from deposit’ under the Annual Information Statement.
Different sources of information for ‘Interest from deposit’ under AIS-
The details of ‘interest from deposit’ will be figured-out under AIS from different sources like-
| Different interest | Corresponding Source of information |
| Interest income from Term Deposit | Interest paid or credited or accrued on Term Deposit is reported under Statement of Financial Transactions (i.e., SFT-016) |
| Interest income from Recurring Deposit | Interest paid or credited or accrued on Recurring Deposit is reported under Statement of Financial Transactions (i.e., SFT-016) |
| Interest income other than interest on securities | Bank/ payer at the time of paying/ crediting interest on deposits is liable to deduct TDS as per provisions of section 194A. Such deducted TDS is to be reported by the banks/ payers via TDS return in Form 26Q on a quarterly basis. |
Processing of AIS regarding ‘Interest from deposit’-
The AIS processing of the information received under the category ‘Interest from deposit’ will be carried out in the following manner-
| Particulars | AIS processing | |
| Source | Treatment | |
| In the case of deposit holder | Reporting entity reports the interest paid/ credited/ accrued on term and recurring deposit under-
|
Interest earned on term deposit and/ or recurring deposit is taxable in the hands of the deposit holder.
Accordingly, the same will be reflected in AIS on the basis of the PAN of the reporting entity; source and value of interest paid/ credited/ accrued. |
| In the case of reporting entity | Interest reported under Statement of Financial Transactions (SFT-016) and the amount reported under section 194A while filing TDS return in Form 26Q | Higher of the following amounts will be retained-
|
Lower of the following amounts will be marked as ‘Information is duplicate/ included in other information’-
|
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Author Bio
Dear sir, while filing IT return of mine I came to know an amount of 250110 as int from post office. but i am not having any account at any post office. when I checked the details nearby post office it is appeared that somebody at New Delhi has given my PAN no. and deposited approximately Rs. 30 lakhs which yield 250110. The amont appears in my AIS. Please instruct how to rectify it.
Thank you
Year wise accrued interest on NSCs are shown on the site of at https://incometaxindia.gov.in/Pages/tools/interest-on-national-savings-certificate.aspx and the interest as shown on this site is shown by the Assessee as income in ITR of that year, as below
2017-18
Year of purchase of NSC 1st yr
(2028-19) 2nd year
(2019-20) 3rd year
(2020-21) 4th Year
(2021-22) 5th Year (2022-23)
Year of maturity of NSC Accrued intt alrady included as income in ITRs in respecrtive years
NSC A/c No.3813911860 dt. 03-11-2017 for Rs40,00 0 3120 3408 3608 3968 4212 18316
NSC A/c No.3920915713 dt. 06-02-2018 for Rs.30,000 2280 2453 2640 2931 3057 13361
31677
BUT
In AIS you have shown total Rs.31,506 (as below) interest earned in all the 5 years in the year of maturity against my above 2 No. NSCs which is causing double taxation whereas incomer tax is already paid by the Assessee on yearly accrued interest basis. This is causing double taxation.
(the above extract of AIS for Assessment Year: 2023-24 of Subhash Candra Gupta, PAN ABWPG41067E)
Necessary correction / remark in AIS be issued that “income on deposits (NSCs) is taxable subject to yearly accrued interest is not already included in income by the Assessee.
From: Subhash Chandra Gupta
CIF No.329489029, SB A/c No.3454269917
A-16 Jaharvirdham Colony, Near Sarai Harnarain, Sasni Gate, Aligarh 202001, U.P.
e-mail: scgsmg@gmail.com, mobile No.7017067851
post office nsc : Interest income (SFT-016) –
Term Deposit – POSTMASTER GENERAL CHENNAI
CITY REGION (CHEP09036G.AP112) – REPORTED VALUE , PROCESSED VALUE , DERIVED VALUE – is it Interest amount accrued – or is the amount of interest paid on maturity – as earlier NSC interest amount accrued was given in Income for filing previous years return – so is it one should continue using accrued interest basis for filing return
Sir. Interest earned on Post Office deposits are posted in AIS by Deductor – Secunderabad Head Office (sec.194A) and Reporting Entity – PMG Chennai (SFT-016). Values are X and Y (say). Prefilled Income in ITR, added X and Y to other income, during FY 2021-22, instead adding X or Y, whichever is higher. My Feed Back was of no avail. It is same in current year too. It seems ITR software considering X and Y are two different sources. This situation may be faced by many taxpayers with post office deposits. Please throw light.
In my AIS statement the interest earned from Senior citizen saving scheme which is a 5 year term deposit
is shown under interest earned from saving bank account
which is not correct.
In the interest earned from term deposit category this interest income from senior citizen saving is already included .Can I proceed filing the return as per 26AS which show the interest paid for both Senior citizen saving scheme and term deposit together.
AIS home page does not open to give feed back.
Kindly guide how to proceed.
Thanks.