Apart from salary income of Rs 75 lakh a year, I have investments in shares and fixed deposits worth over Rs 2 crore. Can I set off short-term capital loss against gains from the fixed deposit interest?
– Subash Kalita
No. Short-term capital loss can be set off only against short-term capital gain or long-term capital gains. It cannot be set off against income from any other sources.
I have fixed deposits of Rs 20 lakh. Every year, the bank has been deducting the TDS. But this year, in my Form 26AS, there is no deduction of TDS. Should I disclose the interest amount in my income tax returns?
Yes. Interest earned on fixed deposits should be disclosed in your income tax returns even if no taxes are deducted. Form 26AS is a statement which reflects the total taxes deducted/ paid on your income as per the income tax department’s database. It could be possible that the bank has deducted TDS, however, the same is not appearing in your Form 26AS due to error in the data furnished by the bank to the income tax department. Hence, it is suggested that you obtain an interest certificate from the bank to know the actual interest received by you and the taxes deducted on the same, if any. If taxes have actually been deducted by your bank and it is not being reflected in your Form 26AS, you should inform them of the discrepancy and request them to have the income tax records corrected in order for you to receive credit for the TDS.
There is a mismatch between the amount my employer has deducted as tax and what is reflecting in Form 26 AS. How do I rectify the mismatch?
— Saurya Pandit
If there is mismatch in the taxes deducted by your employer and the amount appearing in your Form 26AS, then you should inform your employer of the same. Your employer will be required to rectify the quarterly e-TDS returns filed by them with the income tax department. Once the e-TDS returns are corrected, the actual taxes deducted by your employer will appear in your Form 26AS.
The writer is tax partner & India mobility leader, EY. Send your queries to