We have not declared curiosity on National Savings Certificates (NSC) throughout the first yr and neither claimed it under Section 80C. Can we start doing this from the 2nd yr on wards i.e declaring 2nd yr curiosity on NSC and claiming it under Section 80C? Supposing we declare the curiosity yearly nevertheless submit office declares the lump sum curiosity for 5 years throughout the ultimate yr in AIS/TIS under SFT half, will it not become double declaration for us? Because our curiosity earnings in ITR should match with AIS and if we current solely fifth yr curiosity then IT may ship mismatch notices. Please data and clarify every these elements. My earnings should not be in taxable so no tax obligation.
Answer: As per Section 145 of the Income Tax Act, the entire taxpayers having any taxable earnings under the highest “Profits and Gains of Business & Profession” and “Income from other sources” have alternative to produce the equivalent each on accrual basis or on receipt basis. The comparable should be achieved persistently yr after yr. Either you can declare the entire curiosity earnings on accrual basis or on receipt basis. You can’t current some curiosity on accrual basis and some on receipt basis.
So, the reply to your question would rely upon how you have gotten been offering totally different curiosity earnings yr after yr thus far. If you have gotten confirmed it on accrual basis, you possibly can start offering the curiosity earnings from NSC from second yr onward on accrual basis and declare the 80C deduction. Since you can’t revise your outdated ITR, moreover, you’ll have to provide the first yr curiosity moreover along with second yr curiosity. However, deduction under Section 80C may very well be on the market only for the second yr curiosity for my part. Please bear in mind no deduction under Section 80C is in the marketplace in respect of curiosity for the firth yr.
As far as your question on AIS is anxious, you needn’t concern. You don’t desire in order so as to add the curiosity for earlier yr already accounted for throughout the ITR for the ultimate yr even when the submit office reveals the mix curiosity for all 5 years throughout the ultimate yr. You can always make clear that though the submit office has confirmed lump sum curiosity for the entire years in a single yr, you have gotten been offering it yr after yr.
(Balwant Jain is a tax and funding skilled and will probably be reached on [email protected] and @jainbalwant on his twitter take care of)
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