Dear all,
IT department has served a notice under "Computation of Restriction of TDS based on Rule 37BA".
The rental income shown on ITR is different from that shown on 26AS as 30% rental income and property tax have been deducted from the income when filling ITR. Therefore rental income on ITR is 70% of that shown on 26AS minus property tax. IT department has considered TDS on proportionate basis and has served a demand notice. Could someone please advise how to handle this?
| Rental income (A) | 10,00,000 |
| TDS @ 10% (B) | 1,00,000 |
| Property tax (C) | 90,000 |
| Income shown in ITR (D = 70% of A - C) | 610000 |
| Proportionate tax considered by IT department (E = D / A * B) | 61000 |
Thank you.
CAclubindia
