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'If I file revised return, will I get IT enquiry?'

September 09, 2022 08:54 IST
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Do you have any personal income tax query?

Mihir Tanna, Associate Director, S K Patodia & Associates (external link), a chartered accountants firm that offers consultancy, audit and tax services, will answer your queries.

Illustration: Dominic Xavier

Please mail your queries at with the subject line 'Ask Mihir' and Mihir Tanna will answer all your tax queries.


Krishna Kumar V: I am hoping to get my below query answered. I had invested with a stock broker (BMA Wealth Creators) in various shares worth Rs 2,27,738.70 (cost value) between July 2017 and September 2019. The broker was announced defaulter and expelled by NSE on 31 Oct 2019.

Since all my shares were held in the broker's pool account, I filed a claim with NSE as per NSE notification. NSE had reviewed my claim and admitted Rs 2,24,574.48 (cost value of invested amount) from investors protection fund and paid the same in Feb 2021.

NSE further reviewed the claim and recalculated the claim settlement amount adjusting for the closing market value of shares on the date of default/expulsion of the broker. The revised claim amount was considered as Rs 3,12,196.65 (Market value as on expulsion date) and paid the difference amount of Rs 87,622.17 (3,12,196.65 - 2,24,574.48) in Nov 2021.

I request your advice as to how to treat the above while filing the IT return for AY 22-23.

Note: I had not shown the settlement received for Rs 2,24,574.48 in the tax return for AY 21-22 as there was no capital gain.

I would really appreciate your help and suggestions. Please let me know for any additional details.

Mihir Tanna: Tax is chargeable on transfer of capital asset. I understand that in your case, shares are never transferred from your demat account. Additional amount received by you is compensatory in nature. Thus, in my view, amount received over and above amount invested i.e. Rs 87,622 is taxable as Income from other sources in the year in which certainty of Income arises i.e. in AY 2022-23. However, it can be subject to litigation.

Ashok Lalla: I filed ITR 2 for AY 2022-23 with income under Salary, Capital gain & other sources opting Old Scheme. However I realised that New Scheme is more beneficial. Can I file revised return now under New Scheme? Will it attract any enquiry from IT dept? I am a retired senior citizen.

Mihir Tanna: Taxpayer can file a revised return in a case where there is an omission or a wrong statement. In my view, there is no omission or wrong statement in your case, hence if you revise the return, it can be subject to litigation.

2. I retired in FY19-20 & due withdraw My PF in FY 22-23. I liable to pay tax on interest earned on PF for FY 22-23? The PF trust of my organisation is exempted establishment & recognised by IT dept.

Mihir Tanna: Any payment from a provident fund is exempt u/s 10(11). However, as Interest is earned after retirement and in the absence of specific provision, it can be subject to litigation.

Sanala D: My mom has received her pension arrears in Oct 2021 -- which spread across 11 years. She retired in 2009 and till 2020 she was getting less pension and then 2021 she started getting her revised pension followed by arrears in Oct of 2021.

I aware of Form 10 E-Option but how do l fill the details for the past 11 years? Finally since no amount has been deducted by pension department is it that the amount is not taxable considering the span of years.

Mihir Tanna: In table A of Form 10E you have the option to show details of arrears and calculate relief u/s 89(1). In table A, taxpayers can show the difference between the amount of arrears and total income as relief by filing Form 10E before filing Income Tax Return.

Deepak Suri: Dear Sir,

1. I invested Rs 20000 in long term infrastructure bonds in the year 2011 for a period of 10 years under cumulative option. The bonds matured in Dec 2021 and I received Rs 44624 after deduction of TDS of Rs 2736. An amount of Rs 27360 is being shown in my AIS as income from other sources.

2. I have been showing the interest accrued every year on this investment in my IT return for the past 10 years as interest income. However now this year I am again required to show the lump sum amount as income and pay tax on it since it is being reflected in my AIS and 26 AS.

3. IS THERE ANY WAY THAT I DON'T HAVE TO PAY DOUBLE TAX since I have already paid tax as accrued interest over past 10 years? How to reflect same while filing IT. I have filed ITR 2.

Mihir Tanna: If Interest Income is already offered to tax on accrual basis, it will not be taxed again on receipt basis. You can provide feedback against AIS accordingly and no need to offer the same income again.

You can read more of Mihir Tanna's responses here.

Note: The questions and answers in this advisory are published to help the individual asking the question as well the large number of readers who read the same.

While we value our readers' requests for privacy and avoid using their actual names along with the question whenever a request is made, we regret that no question will be answered personally on e-mail.

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