l I have received dividends of some bonds last month for FY25. I filed my returns in July. Should I now file revised returns or declare the dividends in next year’s IT return?
—Gaurav Sharma
Dividend or interest income is taxable in the financial year it is declared, distributed, or paid, whichever is earlier. Since, the dividend was declared in FY 2025-26, it accrued as your taxable ‘income from other sources’ for that specific financial year, irrespective of when it was actually credited to your bank account. As you have already filed your original Income Tax Return (ITR) in July for FY 2025-26 and omitted this payout, you may file a revised return. Accordingly, you can compute and discharge any differential tax liability, along with applicable statutory interest, prior to submitting the revised ITR.
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l I have prepaid my home loan in five years without taking any tax benefit. How can I take the tax benefit now as I have got possession now?
—Hitesh Kumar
Tax benefits for principal repayment are available only after property possession and in the financial year the repayment is made. Since you prepaid the loan before obtaining possession, you cannot retrospectively claim this benefit now. However, for the interest component paid during the pre-construction/acquisition phase, the Act permits relief under section 22 of Income-tax Act 2025. You can claim the accumulated pre-construction/acquisition interest in five equal annual instalments starting from the financial year in which possession was received, subject to the statutory limits under ‘Income from House Property. Additionally, the interest deduction is available under the old tax regime for both self-occupied and let-out properties, subject to the applicable limits. However, under the new tax regime, the deduction is available only in respect of a let-out property.
l I get interest from deposits. Should I pay some advance tax in September?
—Ravish Rana
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If your total estimated tax liability for the financial year, after deducting tax deducted at source, exceeds Rs 10,000, you are required to pay advance tax. However, a resident senior citizen who does not have income chargeable under the head ‘profits and gains of business or profession’ does not have to pay advance tax. So, if you are not covered by this exemption and your interest income results in a net tax liability exceeding Rs 10,000, you must pay advance tax in the prescribed instalments. To avoid interest liability, at least 45% of the total estimated advance tax should be paid by September 15.
The writer is managing partner,
AKM Global. Send your queries to fepersonalfinanace@expressindia.com
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors should assess their financial goals, risk appetite and consult a qualified financial advisor before making investment decisions.
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This article was first uploaded on September eleven, twenty twenty-six, at twenty-eight minutes past seven in the evening.
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