Intimation u/s 143(1) - not accepting 80tta exemption (savings bank interest)

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Karthick J

96 Points Joined June 2017

I have received intimation u/s 143(1), demanding me to pay more tax. The difference in income calculated in my ITR vs 143(1) arises from the "Deductions under chapter VIA". Specifically an exemption of Rs.10000 claimed under Section 80TTA(in my ITR), for savings account interest is not considered by calculations under 143(1). This is probably becuase that Rs.10000 under 80TTA was not specified in my Form-16.(I didn't declare it to my employer)

I am understanding that paying that extra tax is not an option since claiming Rs.10000 exemption is perfectly legal even if it is not mentioned in my form-16 from my employer.

Please let me know how to proceed with this notice.

Replies (53)

CA P V N Varma

609 Points Joined August 2018

I think you are not mentioned Saving bank interest amount in Other source column and you had taken 80TTA deduction and filed the return.

80TTA deduction is allowed only when Interest amount shown under Other source column.
so once check your filed return and if your are liable to pay tax the pay accordingly by filing revised return.

Karthick J

96 Points Joined June 2017

Hello Sir,

Thanks for the reply.

I have filled "Income from Other sources" as Rs.13672. Please let me know if that is correct. Also please help me on how to proceed further.

CA P V N Varma

609 Points Joined August 2018

ohh you had done perfectly .. then once you check your filed income with form 26AS and if everything looks correct login to e-filing then go to e-proceedings and disagree with notice by filling required particulars..

Karthick J

96 Points Joined June 2017

I have uploaded the screenshot of "Income from Other sources" table from my ITR form for more clarity/details.

CA P V N Varma

609 Points Joined August 2018

I have a doubt which ITR u had filed..

CA Bhavik Soni

867 Points Joined December 2015

which itr you have filled ? unless nd untill you didn't mention sb interest separately it will consider as fd interest.

Karthick J

96 Points Joined June 2017

Thanks for your replies.

I had filed ITR-2. This was for Assessment Year 2017-2018.

I had filled it under Schedule OS, Row 1b "Interest, Gross". There was no seperate row to fill Savings bank Interest. Please let me know where to specify Savings bank interest.

CA P V N Varma

609 Points Joined August 2018

usually ITR 1 is enough for Salary and Interest Income ... but you filed ITR 2 it's not a problem.. in ITR 2 saving bank interest should be shown under Other source under interest gross amount column and claim 80TTA up to 10000

if you have filed the same don't worry no problem either you must disagree with notice by login to E-filing or you have to revise your return by filing form ITR1..your problem definitely solved

SHIRISH S S

Proprietor

1080 Points Joined May 2017

Just rectify using reprocess the case.

Pratosh

Project Manager

85 Points Joined July 2009

Hi ,

I am not a tax professional but know one thing if the Interest Income if shown under savings bank only can be exempted under sec 80TTA.

I have seen your upload and am surprised to see you have kept savings bank interest in to a row meant to be for income under horse race. Also the serial numbers are not as per 2018 ITR 2 .

Are you filing ITR 2 as available on IT efiling website ?

Can you tell me which AY year you have this issue

Check the snap shot and underlined row .. if you put 0 in this row you can not claim 80TTA .. Your 13000+ figure will fall in here . Go to Incometax India efiling website without login see rightside menu and locate download

alternatively go to https://www.incometaxindiaefiling.gov.in/downloads/offlineUtilities?lang=eng

choose incometax preparation utilities and dwnload ITR 2 .

I feel you are filing with some website and not filing using utility provided by IT dept for free

Please review AY for which you need to download the utility. Only use utility applicable for the same year available from IT website

Hope this will resolve your issue.

Dave

Karthick J

96 Points Joined June 2017

Hello Varma Sir,

Thanks for your reply. I had filed ITR2, since I had some Short Term Capital Gains. As per your advice I will do the following in the efiling website, and I will choose efile -> Response to Outstanding Tax demand -> Disagree with Demand. Under the Reasons I will choose "Others" (the list of reasons are "Demand Paid", "Demand already reduced by rectification/revision", "Demand already reduced by Appelate order", "Appeal has been filed", "Rectification/Revised return filed at CPC", "Rectification filed with AO", "Others."). After I choose "Others", I will provide my explanation.

Does the above process sound OK for you?

Hello Pratosh Sir,

As I had mentioned earlier, this is for Assessment year 2017-2018. The ITR-2 for that year doesn't have a seperate row for SB interest.

Hello Shrish sir,

I didn't understand your comment completely. What is the process for "Rectification using reprocess"? Can it be done from the efiling site? Could you please elaborate on your comment?

J S BHAVSAR

CONSULTING

1320 Points Joined April 2008

It happened with me also for AY 17-18. A demand was raised, I have Disagreed with the demand and also raised grievance with CPC. Lets see what happens ahead.

SHIRISH S S

Proprietor

1080 Points Joined May 2017

1) lOG IN TO YOUR IT website

2) e-file-> Rectification-> It return

3) select assesment year

4) Give Comm no received u/s 143

5) select 3rd option - reprocess the case

Pratosh

Project Manager

85 Points Joined July 2009

can you send me your 143(1) to advise or demand notice you received ?

you can Personal msg me so i can share you email.

Its easy dont panic

There is Gross Interest Column keep the amount there Schedule OS 1b -- enter all the interests that you received .. if the amount here is zero you can not claim 80TTA and the demand will be initiated as you have kept it at different place. I will be able to help if ou share me the 143(1)