The current income tax laws require individuals to
report all bank accounts held by them, except for the dormant ones, during the
financial year while filing their income tax return (ITR). So, it is clear that
savings account held with banks will have to reported while your ITR. But what
about accounts held in payments banks like Paytm, Airtel and so on? Do you have
you report these as well while filing your ITR?
Here’s what chartered accountants have to say:
Although there is no specific mention about reporting of accounts held in payments banks in the income tax laws, it is advisable that you report all the accounts that you have. “As per the existing ITR forms , it is mandatory to report all your bank accounts except the dormant ones. Further, there is no specific clarification in regard to payments bank accounts. However, as per our view, it is recommended to report all bank accounts in the ITR subject to the availability of IFSC Code and account number”, adds Abhishek Soni, CEO, Tax2win.in, a tax-filing company. Dormant accounts are those in which no transaction has occurred for more than two years.
Naveen Wadhwa, DGM, Taxmann.com says , “The current ITR forms mandatorily require an individual to report all the bank accounts held by him/her during the financial year. The bank accounts to be reported should have a core banking solution (CBS) account number which enables users to accept or transfer money via RTGS/NEFT/IMPS. As Paytm and most of the payments bank accounts are connected to CBS and their account numbers are as per CBS, you will be required to report them in ITRs.”
Chetan Chandak, Head of Tax Research, H&R Block India says, “While reporting active bank accounts held during the financial year at the time of filing ITR, an individual is required to report three details. These are - name of the bank, account number and IFSC code. Therefore, every bank account that has an IFSC code should be reported in the tax return forms.”
What will happen if you don’t report it?
“There is no defined specific provision in the Income Tax Act that tells us what will happen in case of non-reporting of bank accounts in ITR. If any interest income is earned from those bank accounts, then the taxpayer has to report it in their ITR. Non-reporting of interest incomes can attract penalties for under-reporting and misreporting of incomes by the assessing officer”, adds Soni.
says, “If you have earned interest income on deposits in such payment bank
accounts and fail to report it in ITR, it would be deemed as under-reporting of
income. In that case, a penalty of up to 50% of tax sought to be evaded can be
levied by the Assessing Officer.”
Even if you have not received interest income on these bank accounts, it does not mean you should not report it. “Income tax laws require a taxpayer to provide complete and full information. As you have failed to provide information about all the bank accounts held by you, in that case, your ITR can be treated as a defective return. Your assessing officer will send you a notice informing that your ITR is defective and rectify the same within the time period as mentioned in the notice. In case you fail to rectify it, it will be treated like you never filed your ITR”, adds Wadhwa.
What if you have already filed ITR?
If you have already filed your ITR and have not given details of the interest income and the bank accounts with payments banks, you can file a revised return. Chandak says, “For the taxpayers that have already filed and verified their ITR, they have the option to rectify their mistake by filing a revised return. A revised return can be filed anytime before the completion of assessment year or assessment, whichever is earlier. Even if your ITR is processed by the tax department, then also you should file a revised return if you have any additional income to report.”