AIS REPORT DOUBTS

Taxation
1

Hi
So I had 10L in my bank account.
I booked a a FD with it, closed it in a month then booked another another FD with same amount.
Then closed and booked again.

So total 10L I booked it 3 times so it became 30L

In my AIS Report it shows Term Deposits as 30L but I only have 10L deposit in reality.

So should I report it and get it changed or is it normal.

2

To the best of my understanding AIS is a statement which will show all the financial transactions for the year. Since you closed the FD and reopened the same, it will show as if you have 30 lakh when in fact it is only 10. Income tax is on income earned and not on the principal amount and hence this should be ok.

Not sure if there is any area where you can report this when filing tax. @Quicko will be the right person to answer this with clarity.

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3

Neha ji, Turnover is not equal to profit, professionals know that :slight_smile:
That will be std reporting, but as you said, the interest earned is what the IT dept is "interest"ed in.

4

Hello @KingKhan,

The AIS does not always show the correct information. There can be repetitive entries as mentioned by you. To encourage correct reporting in AIS, the ITD has enabled providing feedback on the information reflected in AIS.

You can follow the steps below and provide feedback on the FDs reported repetitively:

  1. Log in to the Income tax portal.
  2. Go to AIS Tab > AIS.
  3. On each Information detail, the feedback options will be visible. You can only choose one of the available choices for your feedback.

While filing ITR, report the correct details.

Hope this helps!

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5

But this is not a mistake. This is a genuine transaction. The purpose of AIS is to show the txn that has happened so that users do not miss reporting. Hence not sure how this can be corrected at AIS.

This can happen even if the user do not close the fd. When opening fd if maturity instruction is to close on maturity the system will close and credit the proceeds. When the customer thereafter opens a fd. It is not incremental fd. Ais will report as new fd. This issue can be resolved to some extent by giving instructions of auto renewal of principal on maturity

As tax authorities are more concerned on income, this should not be a issue

6

Hi @Quicko ,

What are the implications of taxation on fixed deposits of over 10L in a financial year? Is there a fixed limit of FDs per year?

Thanks for your time.

7

Hello @slow,

There is no limit as to how much one can invest in FDs in a financial year. However, the interest on the FD is taxable at slab rate under the income head Income from Other Sources. Also, if you invest in tax saver FD which has a lock-in period of 5 years, you can claim a deduction under section 80C up to ₹1,50,000.

Hope this helps!

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