A person had deposited Rs. 50,000 under National Savings Scheme (NSS) to save tax liability few years ago. Now his accumulated fund has become around Rs. 6 Lacs. Now, he wants to withdraw total fund (Principal & Interest) by opening a Savings Bank Account in Post Office. He files Income Tax Return regularly. He had not taken into account interest income from NSS every year although he is a regular tax payer. Now, can he take all accumulated income in the FY 2016-17? Is it justifed? He has no intention to evade tax. His contetion was that as he has not realise interest income every year so he has not taken into account that relevent years. Now, he is ready to pay tax on total accumulated interest income. Is it possible to do so?
Thanks in advance
CAclubindia
