INTEREST FROM NHAI REC TAX SAVING BONDS

This discussion addresses a query regarding the correct assessment year for declaring interest income received from NHAI/REC tax saving bonds. The user invested proceeds from a property sale in these bonds to reduce capital gains tax liability and received the first interest payment in April 2020. The core question is whether to declare this interest in assessment year 2020/2021 (financial year 19/20) or 2021/2022 (financial year 2020/2021). The consensus is that since the interest was received in the financial year 2020-21, it should be declared for assessment year 2021/2022.