New Delhi: Employers in organisations have historically faced several issues when it comes to filing income tax. While the process of returns filing has now been simplified by the Income Tax department, there are several sections and sub-sections the tax filers have to be careful about. Despite all efforts to keep the filing process clean, taxpayers often receive notices related mismatches.
One such notice that taxpayers in India have been receiving is under the Section 143(1)(a). It may be noted that taxpayers who have claimed investments under Section 80C or HRA but have not mentioned it in Form 16 are liable to receive an email from the tax department, asking for an explanation on the issue.
So basically the issue is related to some of the exemptions that you are eligible for but have not mentioned the same in Form 16. These even include deductions under Section 80TTA, which provides exemption on entire interest income is less than Rs 10,000, and if the amount is more, then the amount of exemption would be limited to the same figure. In addition, even pensioners who are generally not required to submit their investment declarations under the Section 80C are receiving this notice.
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In view of this issue, here are the steps you should follow:
* When you receive the notice, the first thing you are required to do is open the notice and inspect the entire document to identify the returns anomaly. You have to find out what specific return you have claimed under Section 80C and haven’t mentioned in Form 16. Please note, you are more likely to receive this notice if you earn interest from savings account in banks or from fixed deposits, house property but have not mentioned these in Form 16.
* After identifying the mismatch, prepare all relevant documents – rent receipts, LIC statements and interest-related receipts – which would be required to respond to the I-T notice.
* Once you have successfully gathered the documents, you have to log on to the e-filing portal – (incometaxindiaefiling.gov.in)
* After logging in with your specified credentials, head to the E-Proceedings sections under the E-Assessment section. However, some taxpayers may not be able to see this section as it takes a few days for the exact details of the mismatch to appear.
* Once in the Prima Facie adjustment page, you will come across all the mismatches with regards to your filing.
* Now click on the drop-down menu to chose e-Assessment Proceedings Response for Section 143(1)(a). You will now see the same set of details related to your returns and you now have two options – “Agree to addition” or “Disagree to addition”. Click on the first option if you have genuinely forgotten to include income from fixed deposits, interests and others which have been mentioned in Form 26AS. However, if you have added all necessary deductions and have all documents to support, then go for this option. Once you choose to disagree, you will see dialogue boxes under the “Reason For disagreement” tab – here you will have to enter the necessary documents in relation to the tax mismatch. First, the TAN of the employer which is available on your Form 16; then you will need to fill “Deduction made under Section”, where you have to enter 192 if there are any deductions against salary income. It is followed by the “Amount paid/credited by deductor” dialogue box which you have to fill in accordance to the number in your Form 16 Part A. You will also be required to fill “Income/Gross Receipt as per return”, where you have to enter the income after deduction at source.
* On the same page, you have to choose the dropdown titled ‘Reason’. You will now get a list of options where you have to choose from the list due to which the anomaly has been caused. For all HRA deductions, the reason you need to select is “Allowance exempt claimed in return but not in Form 16”. For all other Section 80C deductions, select the option “Deductions claimed in the return but not in Form 16”.
* Once completed, you will receive a note of acknowledgment.
Please note: If you chose the “agree to addition” option, you have to file a revised return within 15 days. Also, if you don’t respond to the notice within 30 days, the same will be adjusted as per the standard norms under Section 143(1)(a).
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