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It returns for assessment year 2014-2015

Gegi Chacko (Manager) (25 Points)

04 August 2016

Hi All,

Request for an advice.

I am an NRI based in UAE

In the year 2013, i had opened and FD time deposit in the name of my mother (67 yrs - housewife (not working)) for an amount of 4.50 lacs. ( @ 9.5% maturity value 4,94,297/-)

Now she received received a notice from IT dept for non-filing of income tax return. She has no other income as she not working. This was a deposit which I made enabling her take care of her personal expenses etc.

Kindly advice what should be our response on the same.

Regards,

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3 Replies

Shreesh Kumar (CA Final) (122 Points)
Replied 04 August 2016

Dear Gegi,

While debiting the Interest amount in mother's bank account, bank deducts TDS on interest. This TDS gets save in the income tax server in the form of FORM 26AS. This is the reason behind notice she has got.

Now your mother has only option to exercise. She will have to file ITR-1. All she needs to do that provide the detials of interest income and TDS deducted on them. Since her income is only from FD Interest therefore she can after claiming basic exemption limit of 2.5Lakhs/3Lakhs/5Lakhs get rid of tax liability. Moreover she can also claim refund of TDS deducted.

Regards

Shreesh Kumar

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