The revenue department has asked taxpayers to revise by March 31 their income tax returns for assessment years 2014-15 and 2015-16 to reflect the interest they received on term deposits.
Consequent to the clarification from the Central Board of Direct Taxes (CBDT), tax will have to be paid on such interest income. The clarification does not cover those taxpayers whose total income, including interest received, did not exceed the exempted annual income limit (of Rs. 2 lakh for assessment year 2014-15 and Rs. 2.5 lakh for assessment year 2015-16) and they will not have to file the additional details.
It does, however, make it mandatory to show interest income in the returns even in cases where Form 15G/15H has been filed.
