Interest income should be shown in Return even Form 15G/15H filed

Interest income should be shown in Return even Form 15G/15H filed

Central Board of Direct Taxes (CBDT) vide its press release March 23, 2016 clarified that interest income should be shown in the return of income even in cases where Form 15G/15H has been filed if the earning is not exempt under Section 10 of the Income-tax Act and the total income of the person exceeds the maximum amount not chargeable to tax.

Government of India

Ministry of Finance

Department  of Revenue

Central  Board of Direct Taxes

PRESS RELEASE

New Delhi,   23rd March, 2016

Sub: Inclusion of interest income in the return of income filed by persons liable to pay tax- regarding-

Information regarding interest earned by individuals and business entities on term deposit is filed with the Income Tax Department by banks including co-operative banks and other financial institutions and state treasuries, etc. Form 26AS reflects only those payments on which tax has been deducted and it can be viewed by the individual tax payer by logging in to www.incometaxindiaefiling.gov.in. The information about interest payments without deduction of tax is also filed by the payer with the Department.

Central Board of Direct Taxes would like to inform the persons earning interest income that interest credited/received on deposits is taxable unless exempt under section 10 of the Income-tax Act. Such interest income should be shown in the return of income even in cases where Form 15G/15H has been filed if the earning is not exempt under section 10 of the Income-tax Act and the total income of the person exceeds the maximum amount  not chargeable   to tax.

Tax payers  are advised  to collect  correct details  of interest  received or credited and

• file their return of income for assessment year 2014-15 (if not  filed already) on or before 31.03.2016 in case their total income exceeds the maximum amount  not chargeable to tax.
• revise their return of income for assessment year 2014-15/2015-16 if the return already  filed   does not include   taxable  interest  income.
• file return of income for assessment year 2015-16, if not  filed  so  far  by including taxable interest income if any, on or before 31.03.2016 and avoid penalty  u/s 271F.

For more details you may contact your Assessing Officer or Toll free number 1800-180-1961.

(Shefali Shah)

Pr. Commissioner of Income Tax

(Media and Technical  Policy)

and Official Spokesperson,  CBDT

Source Document: http://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/454/Press-Release-inclusion-of-interst-income-23-03-2016.pdf