Mrs A had invested in RBI Bonds (Cumulative) in past, few of which got matured in FY 2022-23. She received Gross interest of Rs. 1,94,000/- and interest in maturity of Rs. 19,400/- as per Form 26AS.
However, out of Rs. 1,94,000/-, she showed Interest received on ACCRUAL basis on these bonds totalling to Rs. 96,000/- in past 3-4 Income Tax returns. No TDS was claimed on earlier interest income of Rs. 96,000/-. She was not aware of treatment of interest income.
As she had already shown interest income of Rs. 96,000/- on accrual basis in past returns, now the real income remains as Rs. 98,000/- to be shown in ITR, but now Form 26AS shows RBI bond interest as Rs. 1,94,000/- and TDS thereon.
Now in ITR of FY 2022-23 how to present this information, to show correct income of Rs. 98000/- ??
26 June 2023
In order to remove this difficulty, inserted a new sub-section (20) in section 155 of the Act. This new sub-section applies where any income has been included in the return of income furnished by an assessee under section 139 of the Act for any assessment year (hereinafter referred to as the “relevant assessment year”) and tax has been deducted at source on such income and paid to the credit of the Central Government in accordance with the provisions of Chapter XVII-B in a subsequent financial year. In such a case the assessee can make application in the prescribed form to the Assessing Officer within two years from the end of the financial year in which such tax was deducted at source. Then Assessing Officer shall amend the order of assessment or any intimation allowing credit of such tax deducted at source in the relevant assessment year
26 June 2023
Sir, this has happened first time this FY 2022-23. However she showed 96000/- in previous years IT returns. No TDS was in 26AS not claimed also. But now the interest is received on maturity of Rs. 194000/- Then how to show the balance 98000/- and entire TDS of Rs. 98000/- in the IT return of FY 2022-23???
26 June 2023
Sir, Can we show Gross Interest received as Rs. 194,000/- and a deduction of Rs. 96000/- u/s 57 as Income reported on the accrual basis in previous ITRs?? The resulting taxable figure would be Rs. 98000/- and the entire TDS of Rs. 19400/- can be claimed. Please guide.
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