Interest received from Post Office on NSC

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This query is : Resolved

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This discussion addresses how to correctly declare interest received from National Savings Certificates (NSC) for income tax returns. The consensus is that NSC interest should be declared annually on an accrual basis, not just at maturity. While your AIS may show the total maturity interest, declaring only the current year's accrued interest in your tax return is the correct approach. It's advisable, though not mandatory, to provide feedback on your AIS to clarify this.

K.G.Shah

K.G.Shah (Querist)

02 July 2023 Dear Sir, During the FY 2022-23 I have received 5 years NSC maturity amount which includes interest of Rs. 200000/-approx. However, while filing Income tax return, I have shown interest on accrued basis (Say every year 40000). Now current year AIS shows interest of 200000/-approx . and as against I am showing interest only 40000/-

Whether this will show mismatch of Interest? Is there any provision in return to bifurcate year wise interest? What steps to taken to avoid notice?
KGs

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

02 July 2023 NSC interest is to be declared annually, and not on final maturity. So, what you have done is correct.
No mismatch would occur even if the total interest has been declared in AIS, if you have declared only current year's interest for assessment.

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K.G.Shah

K.G.Shah (Querist)

29 July 2023 SIR , in AIS is it necessary to give feedback that information of interest on NSC is partially correct (as accounted on accrual basis ) ? or no needs to give any feedback..

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

29 July 2023 Not mandatory, but advisable to report.

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