Adjustment intimation for section 143(1)(a) ii

Hundreds of taxpayers are believed to have received notices from the income tax (I-T) department whose systems are unable to process the tax returns correctly. This has led to bloated tax liability on capital gains and denial of credit for tax deducted at source (TDS), among other discrepancies.

Senior accountants have drawn the attention of Pramod Chandra Mody, chairman of Central Board of Direct Taxes (CBDT), regarding the errors at the department’s Central Processing Zone (CPC) in Bengaluru.

After years, Indians will be taxed on their long-term capital gains at 10% if such gains are more than Rs 1 lakh. In grandfathering the tax rule, the government had pegged the price of a stock on February 1, 2018, or the actual purchase price, whichever is higher, as the cost in computing the gain. For instance, if a stock is purchased at Rs 500 in 2016 and sold at Rs 900 in March 2019, while the share closed at Rs 800 on February 1, 2018, the gain is Rs 100, and not Rs. 400/-

The department’s software system is failing to compute the long-term capital gains (LTCG), particularly gains involving multiple stocks.

Another error in LTCG computation relates to shares acquired between February 1, 2018, and March 31, 2018.

According to Ameet Patel, chairman, Taxation Committee, of the Bombay Chartered Accountants' Society, “Returns filed by thousands of tax payers using different versions of the government utility at different points of time are being processed by the CPC and to their shock, they are getting notices from CPC stating that the CPC proposes to make adjustments to the long-term capital gains shown in the return. This is happening in many cases, causing unnecessary hardship.”
 

Read more at: Economic Times ...

Thanks for the reply. This appeared to be a mistake and IT deptt acknowledged it thru sms yesterday. 

Will now have to wait for futher communication. The issue may become difficult to respond if there is no further communication till the last date for me to respond.

Will wait and watch.

Thanks again.

Regards

Rohit

Hello - IT Dept issued another intimation. Now the email has details for Deductions under health insurance. However it does not talk about the earlier intimation details about 'CG'. Does it mean the new email supercedes the earlier email? Should this treated separate?

The reason I am asking is because, I did get email and sms from IT Deptt confirming that there are mistakes and asked to hold.

When I login to IT deptt website, I see both notices under Sec 143 (a) ii.

Please help how do I read this?

Regards

Rohitash

Yea, treat iy independent of the first one, at the same time no need to reply first intimation as it was error on part of CPC.

Need help to respond to intimation received under section 143 (1) a.

Will prefer someone from Gurgaon with whom I can avail services to file return in future as well.

Pls share contact details and I will call back

Regards

Rohit