Rectification u/s 154

Respected experts

I am a salaried tax payer. For AY 2014-15, I filed ITR-2 as, besides salary, my exempt income (dividend + saving account interest) was more than Rs. 10000.

While filing return I mistakenly filed details of TDS on salary in “Details of Advance Tax” in Schedule IT instead of “Details of Tax Deducted at Source” of Schedule TDS1.

I filled details of Exempt income only in Schedule Exempt Income only and not in 1 (a) and 1 (b) of Schedule OS. Because of the above there was a tax credit mismatch even though the credit is available in form 26-AS.

Subsequently I received an INTIMATION U/S 143(1) OF THE INCOME TAX ACT in June 2015 for paying tax due with interest.

I filed for rectification and made the same mistakes as above hence again received RECTIFICATION ORDER UNDER SEC.154 OF INCOME TAX ACT.

Now how do I respond to this? Which of the 3 options is to be selected from

(1) Taxpayer is correcting data for Tax Credit Mismatch only

(2) Taxpayer is correcting the data in rectification

(3) No further data correction is required. Reprocess the case.

Do I need to file a rectified ITR too? If yes, is exempt income is to be shown in 1 (a) and 1 (b) of Schedule OS too?

Your help will be highly appreciated

Thanks in advance

Jai

Replies (3)

U can file a revised return until 31.3.16 and correct the mistakes. If u want to reply to the 154 notice select option 1, as your not changing any data other than TDS

Thanks for your reply sir

Are the details of exempt income to be filled in 1(a) and 1(b) of Schedule OS of the return? 

 

 

 

 

 

Exempt income is to be mentioned in the exempt income not under other sources. Savings bank int is not exempt it needs to be mentioned in other sources and later claimed as dedn in 80tta

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