Notice recvd for not-filing ITR - Int on FD/RD

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  1. Saujanya

    Saujanya New Member

    Dear experts,

    I am a layman in terms of taxation rules,hence I would like to clarify, rather understand the proceedings of ITR on recurring deposit.

    My husband has done fixed deposit(2013)in the name of her sister(35 yrs) who is unemployed. He has opened an RD in her name again. All the interest earned on FD is the monthly deposit in her RD account.This is been happening for the past 3 years. Now the amount in the RD account is Rs 2,00,000.

    She has recently received a letter from the local income tax department asking for the filing returns.

    My doubt is when she is not earning, on what basis do we file the return.

    Please explain
     
  2. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    How can you say that she is not earning.She is earning interest from the fixed deposits and instead of receiving it,she instructed the banker to transfer such interest to RD a/c.
    It is like earning monthly salary and instead of expending it,used for investment purposes.

    Kindly take the action immediately by filing return to income tax dept.Otherwise she has to face penal consequences.
    If she is not able to calculate how much is the interest she actually earned,request the banker to issue interest statement for a particular period.And based on that statement,file income tax returns.
     
  3. Karan Batra

    Karan Batra Well-Known Member

    She is earning Int on RD and shall show the interest received in the Income Tax Return
     
  4. Monica1990

    Monica1990 New Member

    You don't need to file any taxes if your interest income is less than INR 2.5L FY.

    Considering you have only INR 2L in RD, your interest will be much lower and doesn't qualify you to be a tax payer.

    Take it easy and relax.
     
  5. Saujanya

    Saujanya New Member

    Guys,thank you so much for your valuable responses.
     
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