Your Taxes

I am a pensioner with taxable income. I hold a couple of NCDs (and no other bank FDs) for a value of ₹4 lakh, with monthly interest credited to my SB a/c, which comes to around ₹30,000 pa. If my understanding is correct, I have to include this sum under ‘Other Income’ and can also claim an exemption of up to ₹50,000 available for senior citizens. If my above presumption is correct, suppose I invest the same amount of ₹4 lakh with capital and interest cumulatively redeemable at the end of, say, five years to get a total of, say, ₹.6.5 lakh. In such a case, I have to pay tax at the slab rate for the interest component of ₹2.5 lakh. Thus, based on today’s tax rules, there is a clear advantage for opting annual or lower period interest credits than cumulative redemption for a senior citizen. Please tell me whether I am correct.

I am a senior citizen 71 years of age. I filed my ITR-2 on June 5, 2018, without depositing a tax payable ₹28,790. When I learnt the mistake, I deposited the tax and filed the revised return on October 11, 2018. I received a notice u/sec 139(9) on February 16, 2019, pointing out that the health insurance premium claimed in the ITR was ₹40,804 instead of the 30,000 maximum permissible u/sec 80D. I disagreed and submitted that the health insurance premium claimed by me was ₹30,000 and not ₹40,804, to which they agreed and assessed the ITR. Now, I received an Assessment Order dated April 15, 2019, wherein a savings bank interest of ₹7,515 which was included in the Term Deposit Interest and shown under Income from Other Sources and deduction claimed u/sec 80TTA, has been disallowed, and a demand raised. I understand that the savings bank interest should have been shown under exempt income, but due to some misunderstanding at the time of filing the ITR, this mistake was unintentionally made. However, this is not going to affect the tax computation. Kindly guide me as to how I should approach the CPC to get the demand cancelled.