Sec 194H in AIS

In my AIS for A.Y.: 2023-24, TDS on Interest from 'Senior Citizen Savings Scheme' for Rs. 69300 for 2 Quarters from Post Office, is shown under the category "Business Receipts" with TDS under Section 194H (which is for Brokerage /Commission Received).

While the Interest amount and Tax deducted are correct, how to rectify the Section 194H /Business receipt category in AIS in which Options?

Kindly advise.

Replies (12)
Quick Summary
This discussion addresses an issue where TDS on Senior Citizen Savings Scheme interest was incorrectly shown under Section 194H (Brokerage/Commission) in the AIS, categorised as 'Business Receipts'. While the amounts are correct, the user was concerned about the incorrect section and category impacting their Income Tax Return (ITR). The consensus is that direct rectification in AIS is difficult, especially with the Post Office. The recommended solution is to correctly declare the interest income under the 'Income from Other Sources' (IFOS) head when filing the ITR (ITR-2 in this case), ensuring it tallies with Form 26AS, which should prevent issues with the tax authorities.

You can declare the income under head 'IFOS' ...

Who told upto 5 lacs it's exempted.

It is appearing in Form 26AS also under Sec 194H. How to rectify in Income Tax Portal AIS from Business Income category to Interest from Time Deposit category?

No, you cannot change form 26AS. But you can offer the income in IFOS head while filing ITR2 or ITR3.

Hi Chandar,

 

Why you want to rectify it from 194H to 194A on AIS in first instance. If you want to do that, you need to reach out to post office  and ask them to file revised TDS by correcting section code. Looking at the volume of transaction post office usually has, this would be time consuming. All you need to do is to just declare income earned therefrom under income from other sources while filing return and you are done with it.

 

Regards,

 

Manoj

Thank you all  for the guidance.

Dear Manoj,

I file ITR 2 regularly.  My Worry/Query is it appears as Business Income in AIS and one with business income has to file ITR 3 or 4 (I am not sure). If I show it as" Income from Other sources", whether ITO/CPC will consider my ITR 2 as defective Return and reject it? As you are aware there is no way to inform the ITO about this mistake from post office. And I fully agree that Post office will never do 26AS rectification and standard reply will be 'every thing done by computer-we dont do anything'.

Can you find any solution and advise?

Hi Chandar,

File it as ITR-2 showing that income under Income from Other Sources. As long as you are offering income tallying with Form 26AS, there would not be any issue. Commission income doesn't necessary to be reflected under profits and gains from business or profession.

Regards,

Manoj

Thank you so much Mr Manoj for the clarification. It relieves my burden.

Regards,

chandar

All you need to do is to just declare income earned therefrom under income from other sources while filing your ROI and select IFOS from drop down boxes in the relevant pages of the ROI.

Thanks and Regards for the suggestion

No need for any rectification at present.

Okay and Thank you Sir.

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