Important Alert for Tax Professionals Using Third-Party Software : Post Office Deposits’ Interest in AIS Needs Extra Attention This Year..
➡️This year, interest from Post Office Time Deposit schemes (MIS/ NSC/ KVP), all have been reported in SFT under “Interest (Others)” in AIS, instead of “Interest from Time Deposits.”
⚠️ Why this matters for MIS Interest ?
When using third-party ITR filing software with AIS auto-import the software treats MIS interest as general interest income – Interest (Others) and hence, MIS interest does not get classified under ‘Interest from Deposits’.
This prevents deduction u/s 80TTB even if the taxpayer is fully eligible (senior citizens)
To claim 80TTB correctly, reclassify MIS interest manually under Interest from Deposits
Important clarification: NSC & KVP interest will be rightly imported as “Interest (Others)” in ITR from AIS.
These are investment instruments and not eligible for 80TTB, so no change needed while importing!
Summary:
✔️ Check Post Office entry in AIS.
✔️ Identify if it’s from MIS.
✔️ Reclassify under ‘Time Deposits’ if eligible.
✔️ Claim rightful 80TTB deduction.
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