: Communication of proposed adjustment u/s 143(1)(a) of Income Tax Act, 1961.

This discussion addresses a notice from the Income Tax Department regarding an adjustment under Section 143(1)(a) of the Income Tax Act, 1961. The taxpayer claimed both House Rent Allowance (HRA) and deduction under Section 80GG, which is not permissible. The department has proposed an adjustment to disallow the 80GG deduction, increasing the taxable income. The advice given is to either agree to the demand via the e-filing portal or to do nothing, as the department will proceed with the adjustment and recalculate the tax liability, including any applicable interest.