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Investments to be shown in Income Tax Returns

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Mohanraj J

781 Points Posted on 05 July 2021

Dear Friends,

We invested 30 Lakh amount in Post Office for the past 3 years under RD, NSC & 5 years term Deposits.
Source of Revenue - Nil (Earlier savings deposited in PO)
Some interest received from Post office.

We should show this Investment & Interest revenue in ITR?

Replies (5)

Quick Summary

This discussion clarifies whether to declare Post Office investments like RD, NSC, and term deposits, along with the interest earned, in your Income Tax Return (ITR). The consensus is that while the principal investment amount (sourced from savings) doesn't need to be shown again if tax was already paid on it, the interest earned is taxable income. You should report this interest under 'Income from Other Sources' and may be eligible for deductions under sections 80C and 80TTB (for senior citizens).

CMA Poornima Madhava

CMA

9106 Points Posted on 05 July 2021

Interest on RD, NSC and other deposits would be your income from other sources which needs to disclosed in the ITR. You may claim deduction u/s 80C (NSC interest except for last year and 5-yr deposit) and on interest income u/s 80TTB if you are a senior citizen.

Mohanraj J

781 Points Posted on 05 July 2021

Thank u so much Mam. We need to show Inves830 Lakhs in ITR? if yes, how? In future IT Officer don't ask us the source of Investment 30 Lakh. kindly advise me mam.

CMA Poornima Madhava

CMA

9106 Points Posted on 05 July 2021

You have already mentioned that the source of income is savings. When you initially earned those savings, you would have paid tax on it. So you don't have to pay tax on it again. In other words, tax is paid on the interest earned on deposits (not on deposits itself).