Hi,
I needed a clarification on the interest accrued on NSC. An investment was made in NSC in the year 2021 of Rs. 500000/- . it matures in 2026. This year in AIS the information about interest accrued on this NSC is reflected. No TDS is deducted. My query is-
a. Should we show this item(NSC interest) in the ITR?? if yes, where to reflect it in the form in ITR-4.
Interest deducted on bank Fixed deposits, both received and accrued is reflected in the AIS and 26AS and TDS deducted on it is reflected in 26AS. Therefore, 2nd query is
b. If the interest of FDs -both accrued and received are shown in the ITR then confusion exists as to why the interest accrued on NSC is not reflected. Therefore, which system of accounting to be followed mercantile or cash, in order incorporate all the information and tally the return with the AIS, to avoid future litigation.