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Old 5th February 2015, 14:14   #601
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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You have to contact your AO. You had better go to the income tax office in your city and ask for where the DCIT/ACIT for your ward is available. That is the jurisdictional AO for your return.

Do so ASAP - you're in for some pillar to post running around, at a minimum. You had better have your return for that year scrutinized by a qualified CA and take his assistance in approaching the AO.
Thanks hserus!
I just had a verification of my returns and found that I had not included the income from interest from one of my bank accounts while calculating my total taxable income.

Does it make sense to pay the defference amount now itself before approaching the AO? (Just a thought to minimize any interest liability)

Any idea how is the interest on outstanding amount calculated?
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Old 5th February 2015, 15:28   #602
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Use this calculator and definitely pay the tax first. However you still have to meet the AO.

http://www.investmentyogi.com/income...st-calculator/

So if you have paid this tax + penalty proactively and submitted a challan you might be ok.

But generally you would have simply got a notice under section 154 and that'd have asked you to pay some amount of tax. You pay that online and upload a rectified return, the matter is closed.

This matter may be somewhat more complex, eg: your return may have been selected for scrutiny. You had better still meet the AO and take your CA along with you.
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Old 5th February 2015, 15:34   #603
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Any idea how is the interest on outstanding amount calculated?
I can give you half an answer.

Of your total tax liability in a financial year (April of a year to March of the subsequent year), 30% has to be with the IT department by 15/9, 30% more by 15/12 and the final 40% by 15/3. If these targets are not met, your interest liability is:

- For every completed or partial month from 15/9, you pay interest at 1% on the shortfall.
- In addition, if on 15/3 you have not paid 90% of your total tax you pay a further 1% interest on the shortfall.
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Old 8th February 2015, 23:02   #604
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Use this calculator and definitely pay the tax first. However you still have to meet the AO.

http://www.investmentyogi.com/income...st-calculator/

So if you have paid this tax + penalty proactively and submitted a challan you might be ok.

But generally you would have simply got a notice under section 154 and that'd have asked you to pay some amount of tax. You pay that online and upload a rectified return, the matter is closed.

This matter may be somewhat more complex, eg: your return may have been selected for scrutiny. You had better still meet the AO and take your CA along with you.
Thanks hserus!
I think my return was selected for scrutiny, because this year I did not file the tax returns on or before the last date for the first time. I got this e-mail several weeks after the last date of filing.

I used the interest calculator and found out that I have to pay certain amount as unpaid tax + interest. Will decide what to do after I visit the IT office this week.

Thanks binand for the explanation.

Last edited by clevermax : 8th February 2015 at 23:03.
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Old 10th February 2015, 16:45   #605
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Another query:
Can an employer deny an employee's investment proofs at this point in time (month of February which is within the FY) saying that they have already done their clerical work of processing the IT proofs and that further changes cannot be considered? Is it ethically correct?

A friend of mine is saying that his Employer denied to process his rent receipts for the whole year which were submitted this week, saying that their payroll details are already locked for the FY and they cannot change it any further. If someone decides to make an investment in February of March, what can they do in such a scenario?

Last edited by clevermax : 10th February 2015 at 16:50.
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Old 10th February 2015, 17:46   #606
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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already done their clerical work of processing the IT proofs and that further changes cannot be considered? Is it ethically correct?

If someone decides to make an investment in February of March, what can they do in such a scenario?
Submission of IT proof to employers is simply so that they can take the proofs into account when deducting income tax at source.

If for some reason you have submitted proofs late or made an investment after proof submission then all you have to do is to show the income or expenditure as the case may be in your tax return along with everything else, and appropriately pay tax or file for a refund.

If it is a refund you should get it within 5..6 months, given that all tax returns are e filed these days.
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Old 10th February 2015, 19:49   #607
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

I have two issues:
a. In march 2014, I got an intimation u/s 143(1) that I had miscalculated and underpaid some 5k of taxes. I duly paid up within a day. Google tells me that i'm supposed to upload a rectified return or something. No further demands are visible. Should I do something?
b. I just found out that there's some 3.5k demanded under a 2011-12 request which was never visible till a month back.
Name:  tax demand.jpg
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I can't view it. Here's the error.
Name:  tax demand2.jpg
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What to do now? Please guide me to a link suggesting how to tackle this issue?
Thanks in advance.
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Old 10th February 2015, 20:14   #608
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Submission of IT proof to employers is simply so that they can take the proofs into account when deducting income tax at source.

If for some reason you have submitted proofs late or made an investment after proof submission then all you have to do is to show the income or expenditure as the case may be in your tax return along with everything else, and appropriately pay tax or file for a refund.

If it is a refund you should get it within 5..6 months, given that all tax returns are e filed these days.
Thank you. In case of e-filing, how can we show the proof of investment? (rent receipts)
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Old 10th February 2015, 20:26   #609
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by phamilyman View Post
I have two issues:
a. In march 2014, I got an intimation u/s 143(1) that I had miscalculated and underpaid some 5k of taxes.
b. I just found out that there's some 3.5k demanded under a 2011-12 request which was never visible till a month back.
https://incometaxindiaefiling.gov.in...n%20Manual.pdf

That is how to file a rectified return. Simply fill out a new tax return using the excel sheet / Java app on the income tax efiling website, or using a portal like myitreturn.com and if you use the income tax efiling website, just upload the revised xml that is generated from the excel or Java.

Mark your return in the appropriate column as a rectification, and follow the menu options to upload a rectified return.

Do the same for your 2011-12 return after paying the tax they claim you owe, or maybe in the tax paid column for your current rectification return, I think you can mention the old payment as well .. No need to file two different returns.

Check your form 26as for all owed and paid taxes.

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Thank you. In case of e-filing, how can we show the proof of investment? (rent receipts)
No need to attach any proofs with your efiling return as long as you are an individual or huf karta. Any investment that qualifies for tax is paid through cheque / credit card as a rule and both have your PAN linked. Keep all proofs around for at least five years however, in case your return is selected for a scrutiny. Especially for rent make sure your tenant pays by cheque or neft transfer rather than collecting cash, and also property tax is paid online by credit card.

Last edited by hserus : 10th February 2015 at 20:32.
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Old 10th February 2015, 21:36   #610
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Another query:
Can an employer deny an employee's investment proofs at this point in time (month of February which is within the FY) saying that they have already done their clerical work of processing the IT proofs and that further changes cannot be considered? Is it ethically correct?
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Submission of IT proof to employers is simply so that they can take the proofs into account when deducting income tax at source.
Actually that is not true. Section 10 exemptions have to be processed by the employer (HRA, LTC, food coupons etc.). These need to be applied at the time of computing your taxable income, which is done by the employer. The employer then needs to mention the amounts in the Form 16 they issue you.

On the other hand, deductions under chapter VI can be done during the time you file your return if your employer doesn't handle them correctly.

Whether it is ethical for the employer to put a date for them due to clerical considerations - I personally think it is OK.

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Thank you. In case of e-filing, how can we show the proof of investment? (rent receipts)
If the point is about section 10 exemptions, your friend is SOL. If the point is about chapter VI deductions, Suresh's advice applies.
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Old 10th February 2015, 21:56   #611
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

The man did say rent receipts.. I assumed for a property he owns. Yeah if it is receipts for rent that he pays his landlord he is out of luck.
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Old 11th February 2015, 14:51   #612
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Actually that is not true. Section 10 exemptions have to be processed by the employer (HRA, LTC, food coupons etc.). These need to be applied at the time of computing your taxable income, which is done by the employer. The employer then needs to mention the amounts in the Form 16 they issue you.

If the point is about section 10 exemptions, your friend is SOL. If the point is about chapter VI deductions, Suresh's advice applies.
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The man did say rent receipts.. I assumed for a property he owns. Yeah if it is receipts for rent that he pays his landlord he is out of luck.
Yes, it was about rent receipts. So it looks like he has to push the employer to get them adjusted asap otherwise he will have to pay more tax.

Thanks again for the inputs...! it really helped.
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Old 11th February 2015, 16:29   #613
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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I think my return was selected for scrutiny
Read the mail and any attachments once again , does it mention any section ? Does it mention section 154 anywhere ?

If it does mention section 154, it cannot be a scrutiny assessment.
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Old 12th February 2015, 07:53   #614
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Read the mail and any attachments once again , does it mention any section ? Does it mention section 154 anywhere ?

If it does mention section 154, it cannot be a scrutiny assessment.
Yes, it does say :

"Please find attached, the order relating to Rectification under Section 154 of Income Tax Act, 1961"

If it is not scrutiny assessment, what exactly is it then?

Last edited by clevermax : 12th February 2015 at 07:55.
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Old 12th February 2015, 08:10   #615
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Defective return, you made some mistake when filing it, and they're asking you to fix it and upload a corrected version
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