I have received e-campaign message on my mobile for high value transactions for fixed deposit interest and savings interest for FY20. I didn’t know that interest on fixed deposit and savings are to be shown in the income tax return (ITR). All information was correct, so I have submitted my comments as “Information is correct” on the compliance portal. Please suggest what is the next thing I should do or how to pay tax. I took suggestions from 3 chartered accountants they were of different views. One told me to pay self-assessment tax on ” https://www.tin-nsdl.com/services/oltas/e-pay.html ” and the askedme not to worry as many people have received this message and soon income tax department will be giving directions as to what needs to be done. The third chartered accountant told me to pay Rs750 and they will look after my profile. But I am not sure as to whom to believe. Please provide your guidance.
We have assumed that you are not a senior citizen. As per the Income Tax Act, 1961, (the Act), interest income received from fixed deposits and savings bank account is chargeable and required to be disclosed in the ITR. Deduction of interest from savings bank accounts up to Rs10,000 per financial year is available.
As you have not reported the said interest income, one way to report this income is to file a revised ITR. However, the due date for filing the revised ITR for FY 2019-20 that is 31 May 2021 has already expired.
Further, as a general process, once you have submitted a response on the income tax portal in response the e-campaign communication, the tax authorities shall process the tax return and issue an intimation under section 143(1) of the Act considering the responses filed by you. As you have submitted a response on the income tax portal agreeing with the findings of the tax authorities, the tax authorities should issue an intimation under section 143(1) of the Act in which the said interest income would be included and tax on the same would be computed. You may choose to wait for the said intimation to be issued by the tax authorities and post receipt of the intimation you may choose to discharge the balance tax liability as would be stated in the said intimation.
Alternatively, you may suo-moto re-compute your income and tax thereon (along with applicable interest, if any) for FY 2019-20 and discharge the tax liability. Also, you may attempt to file a letter with the Tax Authorities to clarify your position, while acceptance of such a letter is at the discretion of the Tax Authorities.
It may, however, be noted that, the tax authorities may initiate penalty proceedings as well at their discretion if they deem appropriate.
