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How to adjust one rupee difference while e-filing?

ashish (tl) (58 Points)

02 July 2012

Hi.

I have one query. When I tried to e-file my income tax return, it computed tax 1 rupee more than that in form 16. How to handle this? Because of this 1 rupee, I am not able to file return with 'Tax Status: Nil'. Is there any legal way to ignore this one rupee? I think, this is happening because employer generally rounds of taxable income to nearest multiple of 10 and then calculate tax, but, in e-filing, it is not rounding off.

I tried rounding off 'Total Income' on ITR form, but, it is not allowing because the cell is protected. So, I rounded off the 'Income from Salary' to nearest multiple of 10. Is this correct way of handling? I am afraid if my return would get rejected? I have not sent ITR V form to CPC yet. Waiting for this confirmation..

Please help to resolve this...

Regards,

Ashish

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7 Replies

Parihar Gopal (Corporate Taxation ) (392 Points)
Replied 02 July 2012

U CAN SENT YOUR ITR-V TO CPC BANGLORE , PLASE GO THROUGH UNDER SUPPORTING SECTION OF INCOME TAX ACT 1961

INTIMATION U/S 143(1) OF THE INCOMETAX ACT:-

It is very positive step that income tax department to assess all income tax returns filed online quickly. After successful assessment of tax returns by income tax department, issues Intimation u/s 143(1). Normally these intimations will be received through email to the Email address provided in filing income tax returns online. This Intimation u/s 143(1) should be treated as completion of assessment income tax returns for the year unless there is tax due from the tax payer.

We treat this as Intimation of completion of assessment of income tax returns, Intimation of Income tax refund in case refund is due from income tax, India. If net taxable income is more than total tax paid, this Intimation u/s 143(1) will be treated as demand notice for payment of income tax due to income tax department.

We have to interpret the Intimation u/s 143(1) as follows:-

If “NET AMOUNT REFUNDABLE” mentioned in Intimation u/s 143(1) letter more than Rs 100, there is a tax refund due from income tax department to tax payer. Refunds amounting less than Rs 100 won’t be refunded. You can check refund status online https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
If “NET AMOUNT DEMAND” mentioned in Intimation u/s 143(1) letter more than Rs 100, there is tax amount due from tax payer. This will be treated as demand notice for the payment of income tax due. This Intimation letter encloses challan form to pay income tax if the due is more than Rs 100.

If “NET AMOUNT REFUNDABLE /NET AMOUNT DEMAND” is less than Rs 100, you can treat this Intimation u/s 143(1) as completion of income tax returns assessment under Income Tax Act. It can be useful for the proof of Income/ Completion of income tax returns assessment.

1 Like

ashish (tl) (58 Points)
Replied 03 July 2012

Thanks for your reply Parihar..

I have one doubt.. I rounded off the Income From Salary from say 7,89,892 to 7,89,890. Because of this, now the Tax on income is coming same as what is there on my Form 16. Thus, I filed as Income Tax Status as NIL. My only doubt now is as I have changed 'Income from Salary' from 7,89,892 to 7,89,890, will my return be accepted or they can reject because I changed this figure. In TDS worksheet of ITR1, I am still showing Income From Salary as 7,89,892, but, for calculation I changed it to 7,89,890.

Thanks,

Ashish

Parihar Gopal (Corporate Taxation ) (392 Points)
Replied 03 July 2012

u can round off ur income nearest mutiple of 10 eg if your income is 789892 or upto 789895 u can show ur income 789890 & if it is 789896 u must have to show it 789900

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sourabh sharma (Software Engineer) (36 Points)
Replied 03 July 2012

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ashish (tl) (58 Points)
Replied 05 July 2012

Parihar.. can u pls review below and advise if it is correct?

Income from Salary is 789,892. Thus, total income was coming as Total Income (4 - 6) = 669,892. I wanted to round off Total income to nearest multiple of 10, but, since the cell is protected, I rounded off first row i.e. Income from Salary to 789,890. Is this correct? I already submitted the return electronically. Only thing pending is to send ITR V to CPC. Waiting for your valuable assistance..

1	Income from Salary / Pension (Ensure to fill Sch TDS1)	1	789,890
2	Income from one House Property	2	0
3	Income from Other Sources (Ensure to fill Sch TDS2)	3	0
4	Gross Total Income (1+2+3)	4	789,890
5	Deductions under Chapter VI A (Section)	System Calculated

6	Deductions (Total of 5a to 5m)																			6			181,335												6	120,000
7	Total Income (4 - 6)																																		7	669,890

Parihar Gopal (Corporate Taxation ) (392 Points)
Replied 05 July 2012

u have done round off income as per u/s 288A , so there is no problem in sending ITR-V ,

1 Like

drpd (dvc) (29 Points)
Replied 05 July 2012

sir,

on filing online, due to rounding off of net taxable income from 573536 to 573540, my tax payable as per form 16 is 48109, but in the it return excel software it is coming to 48108, i.e : 1 rupee more have been deducted. although it does not matter to me, how do i adjust the 1 rupee in it return?do i need to at all?,

also should i fill Tax status as nil tax balance or refundable? i would prefer it as nil tax balance, can i select nil tax balance with the 1 rupee diff? i do not need refund.

please guide

thanks and regards