Tax
This query is : Resolved
11 April 2019
I had Invested Rs 25000/- in Tata Capital Financial Services NCD on 06.03.2014 under cumulative option.
Every financial year I gets interest certificate for the accrued interest about Rs. 3565/-. This interest I am not getting in my bank account but it is accumulated in my Tata NCD account as I have opted for cumulative option.
This Rs 3565/- I had showed as an Income in my Income tax return in each last four financial year till date.
Now this NCD is matured an I got Rs. 41175/- on 05.03.2019.
My initial investment was Rs 25000/- and received Rs 41175/-. Thus from 06.03.2014 to 05.03.2019 for five years I got interest of Rs 16175/-. (41175 - 25000 = 16175)
During previous four years I have showed interest income Rs. 3565/- every year in my income tax return.
Thus 3565 X 4 = 14260
Total interest I got is 16175
Therefore 16175 - 14260 = 1915.
What I understand is that I have to show interest income of Rs 1915 in this financial year 2018-19 income tax return.
Is am I right ? Then which interest income I have to show in my this year income tax return for F.Y.2018-19 (A.Y.2019-20)
Please advise. I am very much confused. Being a technocrat, account is not my cup of tea, so I request you to please respond.
Every financial year I gets interest certificate for the accrued interest about Rs. 3565/-. This interest I am not getting in my bank account but it is accumulated in my Tata NCD account as I have opted for cumulative option.
This Rs 3565/- I had showed as an Income in my Income tax return in each last four financial year till date.
Now this NCD is matured an I got Rs. 41175/- on 05.03.2019.
My initial investment was Rs 25000/- and received Rs 41175/-. Thus from 06.03.2014 to 05.03.2019 for five years I got interest of Rs 16175/-. (41175 - 25000 = 16175)
During previous four years I have showed interest income Rs. 3565/- every year in my income tax return.
Thus 3565 X 4 = 14260
Total interest I got is 16175
Therefore 16175 - 14260 = 1915.
What I understand is that I have to show interest income of Rs 1915 in this financial year 2018-19 income tax return.
Is am I right ? Then which interest income I have to show in my this year income tax return for F.Y.2018-19 (A.Y.2019-20)
Please advise. I am very much confused. Being a technocrat, account is not my cup of tea, so I request you to please respond.
12 April 2019
Show difference of accrued interest in the current year
12 April 2019
First of all thanks for the response.
Asa per your answer what I understood is I have to shoe Ra 1915 as a interest in the current year income tax return.
Am I right ????
Asa per your answer what I understood is I have to shoe Ra 1915 as a interest in the current year income tax return.
Am I right ????
13 April 2019
Yes, you have to show difference interest income under income from other sources.
13 April 2019
Yes, you have to show difference interest income under income from other sources.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Unanswered Queries
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
