PO RD interest TIS/AIS vs Reporting in ITR.

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This query is : Resolved

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This discussion addresses the confusion around reporting Post Office Recurring Deposit (RD) interest. Unlike other accounts, PO RDs only show the full accrued interest in the year of maturity on TIS/AIS, while taxpayers often report it annually in their ITRs. This creates a significant difference in figures, potentially leading to queries. The advice given is to report accrued interest annually in your ITR, even if it's not reflected on TIS/AIS until maturity, and to file your return with the income already reported, effectively showing only the current year's accrued interest.

rmalhotra

rmalhotra (Querist)

08 July 2022 Sir,
As it is known that Post Office does not report / credit accrued interest on Recurring Deposits annually.
It is reported and reflected only at maturity / closing in TIS/AIS in that year where as account runs for five years. Assesses keep on reporting accrued interest on annual basis with help of PO Calculators. Now in this case there is wide difference of figures that are reported in TIS?AIS being total figure of five year interest in maturity /closing year and that required to be reported by assesses being only one year figure as he had already reported in earlier four year's figures annually in ITRs. Now queries arise

1.How to describe this difference while filing ITR of year of maturity so that it becomes self explanatory at time of filing ITR itself . Apparently there is no place for this in ITR.

2.How to say clearly that earlier interest already reported and difference is now reported in final year.
3. Is it required / advisable to report accrued interest annually during currency of RD OR to report only and once in year of maturity / closing of a/c and pay calculated tax in last year only.

This has become all important as TIS/AIS will show five years' figures and ITR will carry one year figures which can trigger question and result inconvenience.

Pls guide on that as this as time is fast moving.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 July 2022 1 Report as feedback in TIS 5 years interest reported.
2 Above feedback takes care.
3 It's advisable to report accrued interest yearly.
File ITR less income already reported.

Message likes : 1 times

rmalhotra

rmalhotra (Querist)

08 July 2022 Thank you Sir. Your guide is very helpful and clear.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 July 2022 you are welcome ...............

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