Correction in income

in earlier years ITR, interest income of loan is shown as commission income. PY borrower repaid loan b
y depositing it to SB a/c n amount is reflected in 26AS under SFT4. now how justify r prove r correct this as no income tax is evaded r how to show r correct in PY ITR.
thanks in advance
Replies (4)
Quick Summary
This discussion addresses a user's query about correcting an Income Tax Return (ITR) where interest income from a loan was incorrectly shown as commission income in previous years. The user notes that the repayment is now reflected in their 26AS under SFT4. Advice suggests that while past ITRs cannot be directly rectified online, a rectification request can be filed, or the Assessing Officer (AO) can be informed via letter. For the current year, income should be reported accurately as per the 26AS statement, and any discrepancies between high-value transactions and tax returns can trigger notices from the IT department. It's crucial to ensure all income is duly offered to tax.

Any expansion in reporting under the statement of financial transactions (SFT) will mean that such reporting of high-value transactions to the I-T department will be done by financial institutions, they said.
Only third parties would report high-value transactions to the I-T department as per the Income Tax Act. Such information would be used to identify people who are not paying up due taxes, and not for examining affairs of honest taxpayers, they said.
As mentioned earlier, SFT transactions incurred by you will be reported by the respective reporting entities to the IT department. Incase your 26AS incorporates these transactions, you simply need to ensure that the income related to those transactions has been duly offered to tax / accounted for. Any mismatch or discrepancy between the high-value transaction viz-a-viz the tax return filed by the assessee can trigger the issuance of notices by the IT officers.
the SFT transactions appearing in your 26AS are correct and you are accurately filing tax returns, just go ahead and file your ITR same as in a normal scenario.

so you need not to worry about that you should file your itr as normal scenario. It will attract any problems. As it is shown in 26AS means tax is already paid on it
Vjrndra
first be clear interest income on loan cannot be shown as commission income.
Are u disbursing loan?
As per Rbi guidelines you cannot.
Now comes Filing of itr
You hv to place a rectification request.
You can not rectify in return of past previous years. You can inform AO by sending a letter. Current year you show what is correct as per 26AS .
Revise your income tax return

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