Do I need to show NHAI bond maturity proceeds in my IT returns if my income is below taxable limit?

Ans: Yes, even if your income is below the taxable threshold, it is advisable to file Income Tax Returns (ITR) if you've received money from NHAI bonds due to the following reasons:

Taxability of Interest: Although NHAI bonds provide tax exemption on the principal amount, the interest earned during the holding period may be taxable, depending on the bond type. You need to declare this interest in your ITR.

Reporting of Exempt Income: If you have received any exempt income, such as tax-free interest, it's a good practice to report this in your ITR under ‘Exempt Income.’

Filing Requirement: While your total income may be below the taxable limit, the receipt of capital from bonds could involve capital gains implications, which also need to be reported.

Capital Gains: If you've held the NHAI bonds for more than 36 months (long-term capital gain), the profit you've made on maturity might be taxable. The specific tax treatment depends on your overall income and other investments.

Interest Income: While the interest earned on NHAI bonds is generally exempt from tax, there might be exceptions or specific rules depending on your overall income and other factors.

It's highly recommended to consult with a tax professional or accountant. They can provide personalized advice based on your specific financial situation, the type of NHAI bonds you've invested in, and the applicable tax laws.

Here are some additional points to consider:

• Tax Deductions: You might be able to claim tax deductions or exemptions based on other investments or expenses.
• Tax Planning: A tax professional can help you plan your investments and expenses to minimise your tax liability.
• Changes in Tax Laws: Tax laws can change, so it's important to stay updated.

By filing your income tax returns accurately, you'll ensure compliance with the law and avoid potential penalties and ensure smooth processing of future financial transactions.