E-Campaign - Overlap in High Value Transaciontion - Income Tax

Dear Sir/Madam,

I'm in need to respond to e-Campaign notice for High Value Transacton. But the issue I see here is FD Interests are duplicated between "Total interest payable by a banking company (SPP)" and also in "Interest other than “Interest on Securities” received (TDS Form 26Q, Section 194A)".

Say I've FD for a period 18 Month, from July-2018 to maturity Dec-2019 for total interest of Rs.1Lakh, the Income Tax e-Campaign portal is reporting Rs.1,00,000 under "Total interest payable by a banking company (SPP)" + Rs.66,000 (i.e. actual Insterest during FY19-20) under TDS Form 26Q, Section 194A. In this case Rs. 66,000 is the actual interest during the financial year and same has been accounted in ITR, but how should I report the Rs.1,00,000 reported under "Total interest payable by a banking company (SPP)", this 1 Lakh is the actual payment paid by bank at the time of maturity so confused how to report this e-Campaign.

Seeking the help of expoerts here.

Thanks in advance!

Hey Tryaline! This kind of overlap in e-Campaign notices for FD interest is a pretty common issue. Here’s a way to approach your response:

What’s happening here:

The bank reports the total interest payable for the entire FD period (Rs. 1,00,000) under “Total interest payable by a banking company (SPP)”.
Simultaneously, the actual interest accrued or paid during the financial year (Rs. 66,000) is also reported under TDS Form 26Q, Section 194A.
So the system is counting some interest twice—once as the full amount and once as the yearly portion.

How to respond on the e-Campaign portal:

Clarify that Rs. 66,000 is the actual interest income for FY 19-20, which you have declared in your ITR.
For the Rs. 1,00,000 reported under “Total interest payable by a banking company (SPP),” mention that this represents the total interest payable for the entire FD period (July 2018 to Dec 2019) and is not the interest income for a single financial year.
Explain that due to the nature of the FD spanning multiple years, the total interest amount appears in multiple places in the bank’s reporting, causing the apparent duplication.
State that you have correctly reported only the interest income related to FY 19-20 (Rs. 66,000) in your ITR and have paid tax accordingly.

Suggested option to select on portal:

“Information is correct” — because the interest you reported is accurate for the specific financial year.
- You can add remarks or explanation as above in the comments box if the portal allows.