Celebrate Freedom with 10% OFF on CAclubindia Pro Membership. Subscribe Now!

Query regarding IT Return

342 views

Save Share

Join Us Follow Us Add as Source

Debashish

Consultant

66 Points Posted on 07 December 2020

Hi,

I have not been filing my IT returns since leaving my job quite a few years ago...because my annual income is now well below the taxable limit. However, in April 2019, I made a fixed deposit of Rs 9 lakhs from the proceeds of my PPF (public provident fund) account on its maturity. Since the bank has deducted tax on the interest from this FD, I filed my IT return this year in order to claim a refund.

My query is this: Since the IT form, Form 16 A, or Form 26AS do not reflect the source of the Rs 9 lakhs anywhere, will it create a problem with the IT department?

Replies (5)

Quick Summary

A user who hasn't filed IT returns for years due to low income is concerned about a Rs 9 lakh fixed deposit made from matured PPF funds. They filed a return to claim tax deducted on the FD interest but noticed the Rs 9 lakh source isn't reflected in Form 16A or 26AS. Responses suggest this shouldn't be an issue as proof of the PPF source can be provided if requested, and the interest income from the FD needs to be declared.

JATINDER KUMAR

Accountant

3662 Points Posted on 07 December 2020

No.......

If department ask, you can produce proof of source

ATUL Y

574 Points Posted on 07 December 2020

It will not crate any problem as you have income from PPF so no need to worry.

Debashish

Consultant

66 Points Posted on 07 December 2020

Thanks for the responses. Just to clarify....There was no interest income from the PPF account in 2019-20. I just closed it on maturity in April 2019...and created an FD from the matured amount. What I meant was in my IT return form, the Rs 9 lakhs from the old PPF is not declared anywhere....I only declared the interest income from the new FD and the tax deducted. I am assuming that won't be a problem, right? And if asked, I can produce the old PPF passbook and the bank statement.