One of our employees deposited ₹250,000 in the post office as NSC in June 2019, with a maturity date in June 2024.
The interest for the NSC was not reflected in his AIS until FY 2022-23, even though he filed his ITR for that year. In FY 2023-24, only the interest for FY 2023-24 was reflected. Based on this, please clarify the following:
1. Why was the interest for the first three years not reflected in the AIS? Is there a possibility that it was tax-exempt, or was there another reason? Please note that he did not claim any Section 80C exemption for interest reinvestment in previous years.
2. What will be reflected in the AIS for FY 2024-25? Will it include only the interest for the final year, or will it show the cumulative interest for the entire period, including the first three years and the last year?
3. If the cumulative interest for the first three years is not reflected in the next AIS, should he declare it as other income for those years?
13 August 2024
1. That was due to refinement of the process of reporting. It was taxable even if deduction u/s. 80C was not claimed. 2. As of now it seems only for the current year interest. 3. No, It was supposed to be declared in relevant year/s.
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