Clarification from CBDT regarding Interest received on Term Deposits

[Srivatsan Krishnamachari]

Dear Learned Friends, It is reported in News Papers yesterday that as per the clarification from CBDT, the Tax Payer should revise by March 31st their IT Returns for AY:2014-15 &2015-16 to reflect interest received on term deposits. What is the position if the Assessee's Taxable Income after the allowed deductions taken to account is less than the Taxable limit though such persons received interest on term deposits with banks wherein the Tax was deducted at source and duly remitted to the Department and how about the cases where the returns for AY:2014-15 & 15-16 have already been processed and refunds have already been received. The main point I request for clarification is the "Income" whether total income or Income which is taxable arrived at after giving effect to all permissible deductions.

Thank You,

With Regards,

K.Srivatsan

AI Summary

Disclosure of interest income: term-deposit interest must be reported in returns and revised where required.
CBDT requires disclosure of interest on term deposits in tax returns and, if a revision scheme applies, taxpayers must revise earlier returns to record such interest. Interest should be shown in the computation and, if exempt, specifically classified as exempt; TDS already deducted and remitted must be reflected. Tax is computed on taxable income after deductions, but reporting obligations cover gross receipts; the taxpayer bears the burden of proof in any assessment inquiry.