Unrealised interest income

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This query is : Resolved

Quick Summary

If your deductor hasn't paid TDS on interest income and filed the return, you should report this income on a cash basis for your ITR. This means you don't include the unrealised interest income this year. You can declare the income and claim the TDS in the year the TDS is actually deducted and paid. If your ITR is processed before the TDS is filed, you may need to revise your return to claim the income and TDS correctly.

Kalpesh

Kalpesh (Querist)

27 July 2022 I have interest income from unsecured loans. My deductor has deducted TDS on the interest payable and added the net interest payable to the principal amount. This is happening for the 3rd consecutive year. But this year he has failed to pay TDS to the government and thereby failing to file TDS return.
How to account for this unrealised interest income in ITR ? Please reply urgently as last date to file ITR is approaching.

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)

27 July 2022 Need not claim any TDS and don't add interest income this year. You can add the income in the year when TDS is been deducted.

CA Puja Sharma

CA Puja Sharma (Expert)

27 July 2022 Report the interest income on a cash basis and not an accrual basis in your case.
If the borrower pays the interest and deducts RDS for the FY 2021-22 after filing your ITR then you revise your ITR and claim the extra income and TDS.
At present, you can file the return without interest income and TDS.

Kalpesh

Kalpesh (Querist)

28 July 2022 But nowadays ITR processing is very fast. So, how can I claim TDS if my borrower files TDS return after my ITR is processed ?

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)

28 July 2022 In that case you can revise the return before 31.03.2023, offer the income for assessment, and claim TDS over it.

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