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ITR1 Requires Taxpayers To Give Interest Income Break-up

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For the FY 2018-19 (Assessment year 2019-20) in the ITR form 1, individuals will have to give break up in relation to interest income as then the department will be able to easily detect for any false tax breaks being claimed.

 

ITR1 Requires Taxpayers To Give Interest Income Break-up

In an earlier instance however you needed to give a consolidation figure for the interest income and taxpayers used to claim benefit under section 80TTA which provides deduction up to Rs. 10,000 for interest earnings on bank savings or post office account.
Also, for FY 2018-19, senior citizens will be able to claim a deduction of up to Rs. 50,000 for interest income on bank and post office FDs.

Here in complete break up for interest income has to be given with income from any other sources during the year. Also, as savings account interest is to be mentioned separately, the department can easily make out if the claim is correctly made or not.

The new ITR 1 form for FY 2018-19 features a drop-down menu for the taxpayer to select the source of interest income. Herein 5 other income sources are given that includes interest from savings account, interest from deposits (Bank/Post office/Cooperative society), interest from income tax refund, family pension and any other.

Note Section 80TTA deduction for interest on savings account is available to taxpayers below 60 years of age while for senior citizens there is section 80TTB that offers deduction for interest income received from deposits held either with bank, post office or cooperative society.

The interest income covered under section 80TTB includes interest earned from savings account, fixed deposits, recurring deposits, or any other deposits held with a bank, post office or cooperative society. Interest received from any other sources such as company FD or interest from bonds, non-convertible debentures is not eligible for deduction.

 

GoodReturns.in

Read more about: itr 1 income tax returns interest
Story first published: Thursday, April 11, 2019, 15:12 [IST]
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