Hi,
My father has deposited 20 Lak for 3 years in SriRamChits ( Private chit fund company ) which gets matured in the 3rd year . The deposit is made during the F.Y 2016-2017.
There is no entry in his FORM 26AS but as a responsible citizen he disclosed the details to the tax consultant.
During the Tax returns the tax consultant has made him pay tax on the earned interest my manually computing it even though my father hasn’t received any interest amount that year. Is it a right thing to do ? In general how to handle these kind of multi-year FD where the interest will be paid on the maturity year. Should he report this FD in every year filling and pay the tax in advance?
CAclubindia
