Submit response to 143(1)(a) communication from cpc

Tax queries 332 views 2 replies

Ankur Jain

Student Others

143 Points Joined December 2014

Hi ,

I have received communication from CPC to submit response to 143(1)(a) which stats "There is inconsistency between Other Source income in return and Form 26AS". then i checked my form26AS where under section 194A interest are received in my account either from RD or saving acount interest which comes 11398 rs from Rd acoount and 7703 rs from Saving Account interest but in CPC communication they mentioned only 11398 rs.

Now as far as i know i should file reviesed return and need to add 11398 rs as other source of income but they already deduct TDS of 1140 rs for this interest amount. Should i add saving account interest i.e. 7703 as well to my other income (11398+7703 = 19101 ) .

Which income i should mention as other source of income 11398 or 19101 because commuciation mentioned only 11398 ?
How would i claim TDS which is already deducted ?
Can i claim 10000 interest free exemption but how

Any help appericiated.

Replies (2)

Siddharth Goel

Chartered Accountant

3031 Points Joined June 2016

Hi,

26AS only shows the income on which TDS is deducted. In this case, only Interest income on RD of Rs. 11,398 will be subject to TDS and is therefore reflected in 26AS.

Also, TDS is deducted only when Interest income exceeds Rs. 10,000 from savings or RD account as per 194A.

Also, deduction of Rs. 10,000 under section 80TTA is allowed from the interest income of savings acount.

So answer to your questions in the same order is:

1. You should show total interest income of Rs. 19,101 (11398+7703), because both the interest income for RD and savings account are treated as Income from Other Sources.

2. TDS is claimed as the same amount reflected in 26AS. Therefore you can claim the amount of TDS deducted i.e. 1,140 by stating the amount under the heading TDS deducted.

3. Yes, you can claim deduction of Rs. 10,000 under section 80 TTA restricted to the amount of interest income from the saving account of Rs. 7703.