Annual Information Statement (AIS) issues with 5yr National Savings Certificate (NSC)

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In the "Interest from deposit" section of AIS, it shows:

SFT-016(TD),
Interest income (SFT-016) – Term Deposit

ACCOUNT TYPE: Time Deposit
INTEREST AMOUNT: 70,399

 

AIS is showing the full interest paid on maturity of a 5yr NSC.

 

Questions:

1) Can NSC be classified as "Term Deposit" ? Is SFT-016(TD) valid in case of NSCs ? Shouldn't it be SFT-016(Others) instead ?

 

2) The whole interest amount accumulating over the past 5 yrs for the NSC has been shown/reported in one go in the AIS by the POSTMASTER.

As per my understanding, usually, when long term deposits/FDs are opened with banks and are spread over several FYs, the interest accrued in each FY is reported and offered for taxation/TDS/etc.

The NSC in question was for 1,50,000 purchased in FY 16-17, @ 8% pa, Compounded Yearly.

See table:

 

Year Year
Interest
Total
Interest
Balance
FY 2016-2017                  -                       -     1,50,000.00
FY 2017-2018   12,000.00      12,000.00   1,62,000.00
FY 2018-2019   12,960.00      24,960.00   1,74,960.00
FY 2019-2020   13,996.80      38,956.80   1,88,956.80
FY 2020-2021   15,116.54      54,073.34   2,04,073.34
FY 2021-2022   16,325.87      70,399.21   2,20,399.21

 

So, shouldn't only 16,326 for FY 21-22 be reported in AIS instead of the total interest of 70,399 ?

 

3) Since 70,399 is the reported value which reflects also in the TIS's processed & derived values, should I file for an AIS feedback using the AIS utility with "Information is not fully correct" option and try to correct it to 16,326 ?

 

4) In the ITRs for previous FYs, yearly interest amounts derived from the table above (12,000, 12,960, 13,997, 15,117) have been shown under "Interest from Deposit(Bank/Post Office/Cooperative Society)" and also as re-investments under 80C for respective FYs.

Unless it's corrected in the AIS and then accepted, in order to reflect in the TIS, auto-fill value in ITR's "Interest from Deposit(Bank/Post Office/Cooperative Society)" for FY 21-22 would be wrong.

And if I report 16,326 instead of 70,399 while filing the ITR, there are chances that a demand would be raised.

What to do ?

sad

Replies (4)
Check 26AS
File the return after rectification feedback in AIS! when demand arises after filing justify the same.

What did you do finally?

Did you give the feedback- info not fully correct and did it get corrected to 16,326?

And when did you file return, after AIS got corrected OR AIS with feedback but AIS was not updated?

What value did you file in ITR?

 

Read more at: https://www.caclubindia.com/forum/annual-information-statement-ais-issues-with-5yr-national-savings-certificate-nsc--591189.asp#reply

I am having similar issues.

I have purchased NSC and my intention is to pay tax on maturity. However in my AIS statement, Post Master has reported it as TD Income and interest is added on yearly basis.


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