Question: Recently I received a message from Income Tax Department on my mobile. It mentions interest on a large amount of my fixed deposit and interest on savings in the previous financial year.
Little did I know that interest on fixed deposits and savings has to be shown on Income Tax Return (ITR). All the information was correct, so I clicked on ‘Information is correct’ in the portal of Income Tax Department.
What should I do next? How do I pay taxes?
— Ashwin Palve
Answer: You have not mentioned your age here. We assume that you are not a senior citizen. In that case, as per the Income Tax Act, 1981, income from fixed deposits and interest earned from savings account of the bank should be mentioned in the ITR.
You didn’t do that. But there’s nothing to worry about. All you have to do is file a revised ITR. But the last day to do so was May 30 this year. Consequently, there is no such opportunity in the case of the financial year 2019-20.
However, you mentioned that you have clicked on ‘Information is correct’ in the portal. As a result, you have accepted the claim of the Income Tax Department. Accordingly, your interest income will be deducted as per section 143(1). The Income Tax Department will calculate the tax accordingly. In this case, you can pay the rest of the tax.
At the same time, you can also make a separate written application in this regard. However, whether that application will be accepted depends on the decision of the Income Tax Department.
Income Tax expert Parijad Sirwala answers.
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