SFT-005 Reported by Bank is wrong, Dep sent SMS to file IT Returns

Tax queries 3512 views 8 replies

Jagadeesh

STUDENT

48 Points Joined February 2014

I have received SMS stating that I need to file IT Returns. I have visited Compliance Portal and found below mentioned details.

Information Category: - Purchase of Time Deposits

Infromation Code: - 005

Gross Amount Received from person: 43,50,000

Gross amount paid to person:44,52,655

It included Information source and TSN details

The max amount I had in bank account was 1,90,000 I enquired branch manager, and he spoke that he did not anything about it and will consult higher authorities.

I tried contacting Income Tax via phone it's no use.

I humbly request members to suggest me What to do regarding this?

Replies (8)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197343 Points Joined July 2016

It seems you had redeemed earlier time deposits and invested again by new deposits?

same happened with my mother. Axis bank Reported wrong information to ITD.
as far as I know, any FD which renewed under the same Bank account for a FY, Bank should not report those FD amounts to IT Department.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197343 Points Joined July 2016

As per IT rules...

SFT- 005: Time deposit
Banks are playing on safer side.
They are reporting redemption amount also, so finally it gets nullified.

Deepesh Paul

4 Points Joined June 2023

same happened to me also.I invested and redeemed a time deposit within 1 month period, then reinvested the same amount.Thus they are showing aggregated amount of purchase in time deposit which is wrong and also the wrong paid to the person value. What do I do now sir?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197343 Points Joined July 2016

@ Deepesh Paul..

You need not do anything now. Just file your return with all the income declaration, offer tax over the FD interest properly. Keep bank statement ready for these entries of FD creation & redemptions.

Generally, no such queries are raised so far, unless high value transactions.

Deepesh Paul

4 Points Joined June 2023

@ Dhirajlal Rambhia,

The gross amount shown in sft-005 is 15+15 =30 lacs whereas I only created 15 lacs of time deposit genuinely. Isn't it high value transaction? Will I be queried for this? The deposit is partially from previous years' wealth/deposit etc and partially from this year's. However I will pay tax for the annual income which includes the partial deposited amount I earned this year.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197343 Points Joined July 2016

The same problem is currently faced by most of the assesses. Due to constant upward revision of repo rate by Governer of RBI, the FD rate was revised by all the banks, and hence the investors revised the FDs to earn more interest income. In your case bank is not at fault as you redeemed your FD first and rebooked it.

Comparing the issue faced by most, there may not be any query in your case, still if it is been raised; you can reply to it as re-booking the same investment with proof as bank statement.