Income tax

Save Share

This query is : Resolved

Quick Summary

A taxpayer is facing an issue where the Income Tax Department's CPC has added the full amount of Rs 10 lakhs to their income, rather than the disallowance of Rs 3 lakhs under Section 40(a)(ia) as reported in their ITR 3. This discrepancy arose because the tax audit report (Form 3CD) detailed the total amount for which TDS was not deducted, while the ITR 3 specified the disallowance. The taxpayer plans to file a rectification under Section 154 and is seeking guidance on how to proceed, especially if the CPC rejects their initial objections.

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)
Follow

16 March 2020 Sir when we file ITR 3 please refer part OI in this part serial no 8 b states amount of disallowance under section 40(a)(ia) which amounts to 30 percent of ten laks say three laks but in tax audit ref form 3CD serial
No 21. Details of amount for which no TDS has been deducted and in this we had shown the details and mentioned total amount Rs ten Laks. But cpc income tax dept saying that the amount shown in OI and tax audit report differs and added the entire amount of rupees ten laks. We have objected this proposal and intend to file rectification under section 154. Pl guide how to proceed sir.

Eswar Reddy S

Eswar Reddy S (Expert)
Follow

18 March 2020 It is a fault from CPC processing software. You can write a mail to CPC / submit grievance.. You have rightly filed .

Eswar Reddy S

Eswar Reddy S (Expert)
Follow

18 March 2020 Even it is the same case with - interest income if included in PL then we deduct it from income in IT computation and consider it in income from other sources.. This is also been objected by CPC.

Eswar Reddy S

Eswar Reddy S (Expert)
Follow

18 March 2020 CPC requires professionals advice in programming the processing software

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)
Follow

18 March 2020 Eswar reddy sir. Thanks for the reply and guidance I have filed objections and suppose if cpc rejects the objections shall rectification will be filed under section 154 and whether it is coming under preview of section 154 since it is the question of law. Views will be invited from experts regard this query.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now