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Tax Expert - Answered on May 24, 2024

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Question by Dipak on Feb 06, 2024Hindi

Is one required to pay tax on total interest of bonds or total interest less accrued interest paid at the time of purchase of bonds? Contract note shows this amount . If i pay tax after setting off accrued interest what happens to TDS amount deducted? Also there will be mis match between return and 26AS.If I pay tax including accrued interest , it is out right loss to me.

Ans: You have to divide TDS deducted in FY 2023-24 in two parts.

For the TDS in proportion of income to be offered in FY 2023-24, you can claim TDS in FY 2023-24. For the interest income already offered to tax in FY 2022-23, you have to file form 71 and get the credit of said TDS in FY 2022-23.

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Question by Satish - Jan 04, 2022Hindi

I have two queries. (a) After seven years, I received an L&T Infrastructure bond maturity amount of Rs 44,400. When I initially applied for these bonds, I submitted my PAN, still no TDS was mentioned. Is this complete amount included as additional income in my tax return? (b) Annually, Rs 715 as gold bonds interest is credited to my saving bank account. In my IT return, I include 4*quarterly interest amount as income. Saving bank interest on Rs 715 is also included in the quarterly interest. Am I to include, separately, a sum of Rs 715 in my yearly income for income tax purposes?

Ans: Here are the responses:

(a) The interest on the bonds is taxable in the hands of investors.

The full maturity amount is not taxable.

You need to reduce the invested amount to arrive at the interest you have received and you would need to pay tax on this interest received.

(b) The interest on gold bonds is taxable and hence you need to show this in your returns.

The saving account interest is to be shown separately as it attracts deduction under section 80TTA for upto Rs 10,000 and you would need to pay taxes only if it crosses this limit.

In summary, you need to show both the interest on gold bonds and the savings account interest, but separately and after claiming the deduction above for savings bank interest.

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