Recurring deposit interest reporting in AIS

This query is : Resolved

rmalhotra (Querist)
Follow

23 June 2022 Sir,
My client was running one RD with Post office and was reporting accrued interest of every year in his IT return. Now on maturity of RD entire interest amount of Rs 6 Lacs is now shown in AIS,
Whereas out of that amount Rs 4.90 lacs was already included in preceding tax returns of respective years. Now on maturity year he actually needs to report only one last year's interest which is approx 1.10 lac, instead of Rs 6 Lacs as shown in AIS.

How can I deal with this issue in AIS and IT Retun of AY 22-23
Pls guide on above issue .

CA Puja Sharma

CA Puja Sharma (Expert)
Follow

23 June 2022 You will online show Rs. 1.10 as your interest income for the FY while filing your ITR.
If you receive any query from the dept. then you can explain the remaining interest of Rs. 4.90 Lacs have been already included in the previous year's ITR.

rmalhotra

rmalhotra (Querist)
Follow

23 June 2022 Any specific feedback which is suggested to be recorded and updated in AIS . Pls suggest on that also.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

20 July 2025 Great question! Here's how you can handle the Recurring Deposit (RD) interest reporting mismatch in AIS:

Issue Recap:
Total interest on maturity: ₹6,00,000
Interest already reported and taxed in previous years: ₹4,90,000
Interest accrued in current year (to be reported): ₹1,10,000
AIS (Annual Information Statement) shows entire ₹6,00,000 for current AY
How to report in IT Return for AY 22-23:
Report only ₹1,10,000 as interest income for the current year (FY 21-22).
Do not include ₹4,90,000 again in your return, as it was already taxed in earlier years.
What to do about AIS discrepancy?
No change in AIS by taxpayer — AIS is auto-generated based on info from banks/post office.
Add a specific remark/feedback in AIS portal to clarify the issue:
Login to AIS portal.
Find the relevant RD interest entry showing ₹6 Lacs.
Add feedback/remarks mentioning:
"₹4.90 Lacs interest shown here has already been reported and taxed in previous years' returns. Only ₹1.10 Lacs is taxable for the current year."
Submit the feedback to help department understand and reduce chances of any demand notice.
If department raises a query or demand:
Provide proof of earlier tax returns showing ₹4.90 Lacs interest income already reported.
Attach bank/post office interest certificates for all years.
Explain the nature of RD interest accrual and taxation on yearly basis.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now