My deduction under 80 g is wrong and I should have put the amount under HRA, Recd 17k refund in 2023

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My deduction claim under 80 G for ITR 1 for FY 2023-24 (AY 2024-2025) of 2,44,000 is incorrect.

I erroneously put the 80 G amount as 2,44,000 instead of putting it in HRA and put my HRA as 40,000 instead of the correct amount which is around 3.2 lpa

My return got processed AND I received a refund of around 17k in 2024

Last week I received the following Notice 

Income Tax Return Discrepancy Notice – AY 2024–25

Here’s the transcribed and cleaned-up version of the notification message:

Income Tax Return Discrepancy Notice – AY 2024–25

Our records indicate that you have claimed deductions totaling ₹2,44,000 in your Income Tax Return for Assessment Year 2024–25 under donations to charitable or relief funds (Section 80G). However, the PAN (Permanent Account Number) provided for the organization may not be eligible for the deduction claimed.

Action Required: You must update your ITR by either:

  • Correcting the PAN of the organization, or
  • Removing the deduction amount.

Steps to Update Your ITR:

  1. Log in to www.incometax.gov.in
  2. Navigate to e-File
  3. Select File Income Tax Return
  4. Choose the relevant Assessment Year
  5. Under “Select Filing Type,” choose 139(8A) – Updated Return
  6. Select your ITR Type and click Continue
  7. Update the details under Section 80G

For more information regarding filing, please refer to the official website

What should I do? Should I revise my return and remove the deduction and put the amout under HRA?

What will happen to the 17k refund I have received? Should I inflate the HRA by another 20k to setoff refund amount received?

Replies (3)
Quick Summary
A taxpayer mistakenly claimed a large deduction under Section 80G on their ITR 1, when the amount should have been allocated to HRA. After receiving a refund based on the incorrect claim, they received a discrepancy notice from the Income Tax Department. The advice given is to file an updated return (u/s 139(8A)) to remove the incorrect 80G deduction. The previously received refund will be adjusted against the new tax liability, and inflating HRA is not a legal option.

You cannot now move the wrongly claimed Section 80G deduction into HRA. The only legally permitted correction is to file an Updated Return u/s 139(8A) removing the incorrect 80G claim. The ₹17,000 refund already received will be adjusted against the revised tax liability. Any attempt to inflate HRA now would be unlawful and risky. Filing the updated return promptly is the cleanest and safest solution.

How to adjust 17000 refund against tax libaility in an updated return?

How to adjust 17000 refund against tax libaility in an updated return?

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