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

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roopeshm gowda

3 Points Posted on 03 January 2020

Hi sir,
I got below details from income tax department kindly suggest what action to take.
Due date is over.
Adjustments u/s 143(1)(a)
1 Deductions
Taxpayer has claimed house rent
allowance(HRA u/s 10(13A)), hence 80GG
not allowed
60000 0 60000
(ii) Incorrect Claim u/s 143(1)(a)(ii)
Sl.No Schedule Error Descripttion Amount in Income
Tax Return
Amount as computed Variance on account
of Proposed
adjustment

Regards,
Roopesh M

Replies (4)

Quick Summary

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.

rama krishnan

12244 Points Posted on 04 January 2020

Nothing.... demand will be raised according to your income slab on rs. 60000

roopeshm gowda

3 Points Posted on 04 January 2020

Thanks for quick response...
Any action is required from my side or not required.

Kapadia Pravin

17269 Points Posted on 04 January 2020

When you claim HRA, you can not claim 80GG deduction.

You need not reply or you may reply as
" Agreed".

In this case your income will go up by 60000/- and tax liability will be recalculated. From that whatever taxes you paid will be reduced and balance tax alongwith interest under 234A B C (to the extend applicable) shall become payable by you.