First time filing - how to declare fds

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Guest

Hello,

I would like to file ITR return for my mother who is a house wife and has some fixed deposits on her name. Taxes on FD interest are already deducted by the respoective bank and shows up properly in the Form 26AS. The FDs were made directly from her savings account and the money there came from my account which is linked to my PAN number for which I am filing returns every year. There is no cash transaction involved.

So far there is no return submission done against her PAN and this is first time we are planning to do so. So my question is do we need any legal documents supporting the source of FD denomination. Or I can declare the denomination as her asset and file declaring the interest on FD as her income?

Thanks in advance.

Souvik

Replies (5)

Anjali P Nair

ACA ACMA

582 Points Joined July 2016

U can file her return by showing interest as income from other sources in ITR 1.

There is no need to submit any legal documents now.If Assessing officer is demanding any documents for any clarification in future then only it is required.Usually it won't happen.

Guest

Thank you very much for your response. Can you please clarify what kind of document the accessing officer may ask for?

Anjali P Nair

ACA ACMA

582 Points Joined July 2016

Now u can file Ur return without any documents.

If u r return is taking for any scrutiny then only documents are required.(In u r case 90% they won't ask for any clarification) if interest income is very high then only there is some chance.

Usually they will ask for

1. Bank statement for transfer of your income to mother's account.

2.Interest statement from bank(on FD).

3.Source of your income (usually Income tax return) and salary slips etc.