ITR
Exempt income shown in AIS as taxable
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
AIS lists receipts reported to the department, even if they are exempt. You can give customised feedback such as 'Income is not taxable'. In your return, show exempt income in the exempt income schedule where required.
Provisions and law
- Sec 285BB (now Sec 510)Annual Information Statement of a taxpayer's reported transactions and taxes
- Sec 10 (now Sec 11)Exempt incomes
Analysis
PPF maturity is exempt, and interest on notified tax-free bonds is exempt. If ₹5,00,000 PPF maturity shows up, mark it as not taxable and report it as exempt income. Do not add it to taxable income. Keep the passbook or bond certificate in case of a query.
Conclusion
- Identify the exempt item and its legal basis
- Choose the customised option such as 'Income is not taxable'
- Show it in Schedule EI of the return
- Keep the passbook or certificate
A Savvy can do this for you
AIS and TIS feedback and mismatch correction
₹999
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.