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 ?
CAclubindia
