Income tax has claimed that my return has a mismatch. They claim that Tax credited shown in Form 26AS is higher than Income tax as per return.
What is happening is that Company has shown Tax credited/Paid in Form 26 AS EQUAL TO the value shown in Form 16 under Gross Salary Section (Line 1) (say Rs 100/-)? This is how they are supposed to report?
Whereas the way I have filled ITR is such that Income chargeable under the head 'Salaries' from Form 16 MATCHES EXACTLY 6 of Schedule S. (Say this is Rs 90)
The variance identified by Income Tax department (Rs 100 - Rs 90 = Rs10) is because of the exemptions u/s 10 which I have received in Form 16 due to HRA and Medical allowances. So, the numbers are tallying up but somehow Income Tax department is not factoring the exemptions u/s10
Is it happening because in Schedule S, there was an entry 7 (Allowances exempt under section 10 (Not to be included in 6 above)) which I had not filled but was supposed to fill?
I have to dispute it completely. What should I be informing them?
Thanks
CAclubindia
