ITR
FD and savings interest in AIS not shown in ITR
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
Interest from banks and post office is reported in AIS even if no TDS was cut. If it is missing from your return, it is unreported income, however small.
Provisions and law
- Sec 285BB, Income-tax Act 1961 (now Sec 510, Income-tax Act 2025)The department provides an Annual Information Statement showing information it holds about the taxpayer.
- Sec 139(8A), Income-tax Act 1961 (now Sec 263(6), Income-tax Act 2025)Updated return within 48 months from the end of the assessment year, with additional tax.
- Sec 56, Income-tax Act 1961 (now Sec 92, Income-tax Act 2025)Interest is taxed as income from other sources.
Analysis
Say AIS shows ₹38,000 FD interest and your return showed none. At a 30% slab that is about ₹11,856 tax with cess, plus interest. If the revision window is open, revise; if not, an updated return in the first year adds 25% of tax and interest. Then respond to the campaign saying the income has been included.
Conclusion
- Match each interest line in AIS with your bank certificates.
- Compute the extra tax with interest.
- File a revised or updated return.
- Respond on the portal referring to the new return.
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