Answer

1. F

   Facts

   Non-filers are often picked up for reassessment when AIS shows high value transactions. If your income was below the taxable limit, you can explain that with proof. The FD itself is not income, but its source and interest are.

2. P

   Provisions and law

   • Sec 148A (now Sec 281)Before a Sec 148 notice, the officer must share the information, give a show cause notice and pass a reasoned order
   • Sec 147 (now Sec 279)If income chargeable to tax has escaped assessment, the officer may assess or reassess it
   • Sec 69 (now Sec 103)Unexplained investments can be taxed as income if the source is not explained
3. A

   Analysis

   Show the source of the FD, such as savings over years, sale of jewellery or a gift from family, and the interest earned. If total income including interest was below the exemption limit, there is no escaped income to tax. The officer may still issue a Sec 148 notice to get a return on record, in which case file it. Keep the explanation consistent with family members' records.

4. C

   Conclusion

   1. 1List the source of the FD money with documents.
   2. 2Work out total income for the year including interest.
   3. 3Reply explaining source and that income was below the limit.
   4. 4File a return if a Sec 148 notice follows.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.