I’ve acquired e-campaign message on my cellular for top worth transactions for mounted deposit curiosity and financial savings curiosity for FY20. I did not know that curiosity on mounted deposit and financial savings are to be proven within the earnings tax return (ITR). All info was right, so I’ve submitted my feedback as “Information is correct” on the compliance portal. Please recommend what’s the subsequent factor I ought to do or the right way to pay tax. I took solutions from 3 chartered accountants they have been of various views. One advised me to pay self-assessment tax on ” https://www.tin-nsdl.com/services/oltas/e-pay.html ” and the askedme to not fear as many individuals have acquired this message and shortly earnings tax division can be giving instructions as to what must be achieved. The third chartered accountant advised me to pay Rs750 and they’ll take care of my profile. But I’m not positive as to whom to consider. Please present your steering.
– Ashwin Palve
Answer by Parizad Sirwalla is associate and head, international mobility companies, tax, KPMG in India.
We have assumed that you’re not a senior citizen. As per the Income Tax Act, 1961, (the Act), curiosity earnings acquired from mounted deposits and financial savings checking account is chargeable and required to be disclosed within the ITR. Deduction of curiosity from financial savings financial institution accounts as much as Rs10,000 per monetary yr is obtainable.
As you haven’t reported the mentioned curiosity earnings, one approach to report this earnings is to file a revised ITR. However, the due date for submitting the revised ITR for FY 2019-20 that’s 31 May 2021 has already expired.
Further, as a basic course of, after you have submitted a response on the earnings tax portal in response the e-campaign communication, the tax authorities shall course of the tax return and problem an intimation beneath part 143(1) of the Act contemplating the responses filed by you. As you might have submitted a response on the earnings tax portal agreeing with the findings of the tax authorities, the tax authorities ought to problem an intimation beneath part 143(1) of the Act by which the mentioned curiosity earnings could be included and tax on the identical could be computed. You might select to attend for the mentioned intimation to be issued by the tax authorities and submit receipt of the intimation you could select to discharge the steadiness tax legal responsibility as could be said within the mentioned intimation.
Alternatively, you could suo-moto re-compute your earnings and tax thereon (together with relevant curiosity, if any) for FY 2019-20 and discharge the tax legal responsibility. Also, you could try and file a letter with the Tax Authorities to make clear your place, whereas acceptance of such a letter is on the discretion of the Tax Authorities.
It might, nevertheless, be famous that, the tax authorities might provoke penalty proceedings as effectively at their discretion in the event that they deem acceptable.
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