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Income Tax Dought

CS BHAVIK HARSHAD SHAH (Company Secretary) (1662 Points)

29 May 2011

Hi friends, Amount received on Maturity of Post office monthly Income scheme is Taxable or not Please Give Solution

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7 Replies

Daniel Robert (Accounts Teacher cum Student) (43 Points)
Replied 30 May 2011

Yes it is taxable.

Even the interest earned is fully taxable. There is no tax deducted at source (TDS). The investment in PO MIS is exempt from wealth tax.

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Devendra (Chartered Accountant) (4775 Points)
Replied 30 May 2011

THE TDS IS DEDUCTED AT THE TIME OF MATURITY. FILE THE ITR AND CLAIM THE INCOME TAX REFUND IF YOUR INCOME IS BELOW TAXABLE LIMIT.

REGARDS,

DEVENDRA

Balaji (Knowledge Seeker) (317 Points)
Replied 30 May 2011

The interest earned on POMIS would have been offered for taxation in the respective years.Maturity Bonus(if any) would be taxable in the year of maturity.Post-office does not deduct TDS on POMIS.

CS BHAVIK HARSHAD SHAH (Company Secretary) (1662 Points)
Replied 30 May 2011

actully my father had invested 18000 5years before & now they get refunded wth 10% bonus i.e they get 19800.and every ear they get 120 p m so 1440 p a.but they didnt pay tax on hat so please help how to treat the above transaction in current year....

thanks

bhavik

Balaji (Knowledge Seeker) (317 Points)
Replied 30 May 2011

In the current year you would be able to account for only Rs.1800/-(Maturity Bonus) and any interest received for part of the year before maturity.Since the interest payments for the earlier years have been actually received by you through payouts,it would not be possible to account for the same in the current year.If it was an investment with a cumulative option,then we could have explored possibilities.