08 July 2022
Sir, As it is known that Post Office does not report / credit accrued interest on Recurring Deposits annually. It is reported and reflected only at maturity / closing in TIS/AIS in that year where as account runs for five years. Assesses keep on reporting accrued interest on annual basis with help of PO Calculators. Now in this case there is wide difference of figures that are reported in TIS?AIS being total figure of five year interest in maturity /closing year and that required to be reported by assesses being only one year figure as he had already reported in earlier four year's figures annually in ITRs. Now queries arise
1.How to describe this difference while filing ITR of year of maturity so that it becomes self explanatory at time of filing ITR itself . Apparently there is no place for this in ITR.
2.How to say clearly that earlier interest already reported and difference is now reported in final year. 3. Is it required / advisable to report accrued interest annually during currency of RD OR to report only and once in year of maturity / closing of a/c and pay calculated tax in last year only.
This has become all important as TIS/AIS will show five years' figures and ITR will carry one year figures which can trigger question and result inconvenience.
08 July 2022
1 Report as feedback in TIS 5 years interest reported. 2 Above feedback takes care. 3 It's advisable to report accrued interest yearly. File ITR less income already reported.
CAclubindia
