Schedule OS 1b value is correctly entered in the right column with all interest. Same has been considered correctly in the processing also.

Just when it comes to Chapter VIA tt is the Chapter VIA deduction that has excluded 80TTA.

Remember, this year, they are not raising Rectification and not entering the CPC Communication reference number into portal. They are processing u/s 143(1) and raising tax demand by neglecting 80TTA and directly raising a demand of the said amount. We have to agree or disagree to demand.

Actually, we can simply say they dont want taxpayers to rectify in rectification.

Why are their computers skipping Sec 80TTA entry in Chapter VI-A is not coming out clear in their responses too.

Some very major fault is in their systems or something very fishy is going on at CPC Bengaluru.

Now here is the thing happening.

CPC have changed the ITR2 form early August 2018 where the Savings Interest column is separate from that of FDs etc. To accomodate the processing those forms, they have added the logic in processing of 143(1) saying

If the savings account interest is missing in particular row column in OS, then skip the Sec 80TTA deduction.

In CPC, their right hand does not know what left hand is doing.

 

Same Case For AY 2017-18, ITR - 2  Return filed.

Interest with Saving bank interest declared in OS as there is no separate row for saving bank interest in ITR-2 for AY 2017-18 and declare the deduction in chapter VI A under 80TTA.

But received processing intimation 143(1)  where Tax computed did not consider this deduction and raised the demand.

VINEET AND BHAVSAAR instead of rushing to Greivance -One must understand that Human interference is minimal. Go to your account -> efiled returns-> click on ack No -> down load the full return in pdf form which you have up loaded. If you have taken exactly 10000 then computer might give error  but if you have taken  10069 say then this seems realistic to the computer.

Still I suggest you ask them to reprocess the case in rectification.

What Shirish is saying is also correct, but the same should be said in Grievance response from CPC to the taxpayers. They have to tell taxpayers that Savings Account interest should not be a rounded amount to the closest thousand thus CPC computer logic will reject such amount.

On the other hand, the same CPC computer does not reject Sec 80C Rs 1,50,000 which is also round amount to nearest thousand.

Why silently build some computer logic which is not known to taxpayers?

They can build a simple logic:

1) If amount in Schedule OS interest column is more than the Bank interest amount from 26AS,  assume that remaining is savings account interest

2) If amount in Schedule OS interest column is equal to than the Bank interest amount from 26AS, assume that taxpayer has not declared any savings account interest in that year

Thank you everyone for your kind replies.

I have "Disagreed with the demand", in the efiling site. Let us wait and see what happens. 

I also received the same notification for AY2017-18 for ITR2. It seems all ITR2 assesses with 80TTA exemption have got this intimation and looks like global issue at CPC end. After filing the rectification with reprocessing what is the surety that same technical glitch will not reappear again and will not regenerate the demand. Is there any manual intervention when rectification is filed ? else it could result in same result.

Bhavsar - 150000 exactly can be invested. It is in your hands.  10k exact savings bank interest will occur if and only if  you have  Rs 285714.2857 kept for 12 months @ 3.5 PERCENT or vague figures in several banks (many combinations possible in this ). They have programmed the computer in such a way that exact 10k is a remote possibility.  No harm if you put 10002 . IS IT?

 CHEERS!!

I've got the same issue. Can you please let me know what response you've submitted while disagreeing with "Others" option as Reprocess option is not there

However there still exists a remotest possibility of saving interest coming as Rs 10,000 not just 1 in 1 million but more. And department should not program in such a way that if the amount entered in Sec 80TTA is exact Rs 10,000 just simply reject the deduction. This is wrong on CPC part and the programmers and the bosses who gave such requirement to the programmers.

I think SHIRISH has summed up the root cause of this issue correctly. I had filled Interest income as Rs.13672 (all from Savings bank account) in Schedule OS, and Rs.10000 in 80TTA under Schedule VIA. Maybe as SHIRISH says, if I had filled Rs.13672 in 80TTA it might not caused this problem (anyways the ITR utility will limit the exemption to Rs.10000). 

@ Navin, @ Sumit,  I have not filed rectification with reprocessing currently. Rather I have selected efile -> Response to Outstanding Tax demand -> Disagree with Demand. Under the Reasons I have choosen "Others". In the explanation box(it has character limit), I have typed the following. "Rs.10000 exempted under section 80TTA is not considered by the calculations in "Intimation u/s 143(1)". I have specified my Savings bank Interest Income of Rs.13672 in Schedule OS". 

 

Yes now in AY 2018-19  PR4   in OS schedule   the interest component is bifurcatred into 4 components  a) Savings bank b) Interest from tax refunds c) Time Deposit d) others.

So this AY  you guys won't have problems.   (a) part in schedule OS and  chapter VIA  item (r) should match.

I have my ITR 2 for 2017-18 & 2018-19 Processed without any comment and 80TTA accepted. I am NRI and have NRO account getting SB interest more than 15K of which 10k is deducted under 80TTA accepted. I have few more family members and no one get 80TTA rejection. So I am sure it is not generalised rejection. I am using excel utility and prepare for each of my family and friends for them to upload.

Not boasting myself but am curious what is not correct in rejection cases and what is correct in my case. So even requested to karthik a copy of 143(1).

I will share screen shots of ITR 2 where there is no salay income but CG , house property, interest, dividend and fixed deposits. 

I am sure the questioner Mr. Kartik must have submitted his reply of demand so await the result. Best luck

To get 80TTA exemption, you need to fill interest amount in schedule OS at serial number bi in the row of "from Saving Bank". It seems that you have filled saving bank interest amount in other column. 

Now you need to revise the return by filling interest amount correctly in schedule OS. Untill you didn't revise your return, system will not allow you exemption under section 80TTA even on disagree or rectification u/s 154.

Yuvraj - They are all talking about  AY 2017-18.

This year ( AY2018-19) is bifurcated.properly

An update.

In addition to disagreeing with the demand, I have also selected for Rectification with reprocess as suggested by Mr.Shirish in this thread earlier.