Income tax

Paresh Jani (Dy. General Manager) (25 Points)

11 April 2019  

I had Invested Rs 25000/- in Tata Capital Financial Services NCD on 06.03.2014 under cumulative option. Every financial year I gets interest certificate for the accrued interest about Rs. 3565/-.

This interest I am not getting in my bank account but it is accumulated in my Tata NCD account as I have opted for cumulative option.

This Rs 3565/- I had showed as an Income in my Income tax return in each last four financial year till date.

Now this NCD is matured an I got Rs. 41175/- on 05.03.2019.

My initial investment was Rs 25000/- and received Rs 41175/-.

Thus from 06.03.2014 to 05.03.2019 for five years I got interest of Rs 16175/-. (41175 - 25000 = 16175)

During previous four years I have showed interest income Rs. 3565/- every year in my income tax return.

Thus 3565 X 4 = 14260  Now total interest I got is 16175

Therefore 16175 - 14260 = 1915.

What I understand is that I have to show interest income of Rs 1915 in this financial year 2018-19 income tax return.

Is am I right ?

Then which interest income I have to show in my this year income tax return for F.Y.2018-19 (A.Y.2019-20)

Please advise. I am very much confused.

Being a technocrat, account is not my cup of tea, so I request you to please respond. 

Read more at: https://www.caclubindia.com/experts/tax-2731384.asp