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Tuesday, March 16, 2010

What To Do if Return Filed Without Declaring Interest on NSC ?

January 4, 2010 by taxworry · Leave a Comment 

I have invested Rs.30000 in 6-Years NSC on 29/03/2003. to take a benefit of tax rebate under chapter VIII.The date of maturity was 29/03/2009. The maturity amount is     Rs. 60450/. I have not added the yearly interest amount as an Income in my Income Tax return. But i forgot to show this interest amount (60450-30000=30450) in IT return. I have already E:filed my It return ( ITR-1, as salary income) of financial year 2008/09. Though I have still today (03/01/2010) not withdrawn the maturity amount of NSC.If I reinvest all Rs.60450 today in NSC again, can i take the benefit of 80C for current year ?

Kundanlal K jariwala, Surat

Since the NSC matured in FY 2008-09 , it does not matter whether you encased or not. As far as forgetting to show the income is concerned, you can still file a REVISED return u/s 139(5) of the I T Act which provides time upto one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier .

So, compute tax afresh,pay tax  and file revised return .That’s all.

Any other method will unnecessarily create avoidable complexity.Investing this year i.e 2009-10 will give you benefit of deduction u/s 80C , but you can not include income which accrued in Fy 2008-09. So that method is not effective.

Note:

You have not stated whether you have ever shown interest on accrual basis , if you have , there is no reason for showing interest income now.

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