[hserus]

You had better take the challan and proof of payment (bank statement) to the AO concerned that issued your tax demand as per the 143(1) notice and have them rectify it.

Before that you can try to correct it through the TRACES app where your form 26 AS is displayed but I think there's a 3 month time limit after payment for that one after which you need to contact the concerned AO.

Take a CA with you, you will need professional help

Originally Posted by mooza

I got a demand notice for Rs.70,000/- for 2017 assessment year, with a weeks time to respond.

But I have paid the amount already in 2017, and have my Tax Challan receipt for the same as well. However, my auditor now discovered that I have paid under the wrong challan (286 instead of 280).

How can this be rectified ? Do I first need to pay again to clear the demand ?

[mooza]

Originally Posted by hserus

You had better take the challan and proof of payment (bank statement) to the AO concerned
Take a CA with you, you will need professional help

Thanks a lot for your reply.

Yes, will take my CA along when I visit the officer.

[mail4ajo]

I have an unique issue. I am an NRI for last 3 years AYs. For some reason, my last refund failed. Previous years have worked fine.

I tried to get reissue of the refund online. However I am unable to e-verify via bank since my bank is Citibank which is not connected. I do not have an Aadhaar card or Demat.

What are my options for getting the refund reissued? Is there an offline method?

[lambuhere1]

Annual Health Checkup : Claim under 80D ?

Hi,

Being grey haired person, I undergo annual health checkup to keep track of the health condition of the tissues of the body

Came to know recently that the same can be claimed as an exception under section 80D. Is it true ?

What documents do we need to attach to claim the same ? And is the section application only for self or family ?

[sunilch]

Originally Posted by lambuhere1

Annual Health Checkup : Claim under 80D ?

Hi,

Being grey haired person, I undergo annual health checkup to keep track of the health condition of the tissues of the body

Came to know recently that the same can be claimed as an exception under section 80D. Is it true ?

What documents do we need to attach to claim the same ? And is the section application only for self or family ?

Hey lambuhere1,

The said Section 80D is available for both - preventive healthcare checkup and medical insurance premium payments for dependents. However, the limit for the preventive checkup expenses exception is INR 5000.

Documents - payment receipt of any test conducted. Even the consultation fees that you pay is eligible for the same (assuming all is under 5000).

Eligible members - you and dependents (including parents)

[lambuhere1]

Originally Posted by sunilch

Eligible members - you and dependents (including parents)

Thanks a lot Bro. Will definitely help. Have been loosing on this for the last few years

[RaguHolla]

Originally Posted by mooza

Thanks a lot for your reply.

Yes, will take my CA along when I visit the officer.

May be I am late here in replying. It wasn't necessary to visit office. What I did in similar situation is create grievance in your income tax filing site (as part of grievance provide challan). Take that grievance number, raise a grievance against accessing officer in PG portal.
One may ask why two grievances, usually accessing officer closes grievance without doing anything! Or closing demand order. However, when PG portal grievance created, as part of closing Grievance they would also close your ITR. This is what I have experienced in two different years for three different PAN (I am responsible for filing whole families ITR!).

[meerkat]

IT Deductions - Earning vs. Investing time

I couldn't find this issue discussed in this thread, so here is my query to the knowledgable members:

When in the FY can you invest / spend in order to be able to claim, say, Sec. 80C Deductions? Must you have already earned the money invested / spent before doing so, or can it be anytime during the FY, even from your savings, as long as your total taxable income for the same FY is more than the deduction claimed?

Please Consider the following scenarios:

1. One is often advised in various financial forums to invest upto 1.5L in lumpsum in PPF between April 1 & 5 of the FY in order to maximise income. Can one claim this investment towards 80C Deduction for the corresponding FY, if the total taxable income reported in the said FY is more than 1.5L? Presumably not too many people can demonstrably earn 1.5L by the 5th of April!

But please also consider these:

2. Your Mediclaim premium of 75k falls due on the 1st. of April. You've no option but to renew it. I believe it would be extremely unfair if you are not allowed the relevant deduction on it, just because you haven't earned the money yet!

3. You've registered a house in your name in the first week of April. So can you or can you not claim the Stamp Duty/Registration fee paid (upto 1.5L) as a deduction under Sec. 80C (let's assume your reported taxable income for the relevant FY is 15L)?

--- One could presumably think of many more similar scenarios!

The government has no qualms about collecting taxes even on a notional basis (e.g. taxing investment income (that one will not get in one's hands until several years into the future) on accrual basis). So it seems only fair that they allow deductions on that taxed income for allowed investments/expenses made anytime during the relevant FY from whatever sources.

I could find no clear discussion of this issue anywhere (including in the myriad tutorials from the CBDT). Are any of you knowledgable members aware of any concrete documents in this regard (including CBDT sources, court verdicts etc.)? Thanks.

[fordday]

During my IT efiling in July 2018, there was difference of Rs 3190 between the TDS and Tax payable.

In the Excel template, there is the provision to pay this difference, E-Pay Tax button near the bottom of the template. The link takes you to NSDL website where you can pay.
I promptly paid the Rs 3190. This was done before submitting.

Now after return of ITR V processing, I am being asked to pay this amount Rs 3190.

I don't have any challan proof from NSDL about this payment. Only my bank statement shows this amount with a vague description text.

What are my options? I posted a query in NSDL website. But there has been no response.

[binand]

Originally Posted by fordday

During my IT efiling in July 2018, there was difference of Rs 3190 between the TDS and Tax payable.

Now after return of ITR V processing, I am being asked to pay this amount Rs 3190.

As far as I know, the only option to pay this ("Self Assessment Tax") is via your bank's netbanking. At the end of the process the bank will give you a challan. You have to retain that challan and enter its details in the final return that you submit. In fact, the Java utility (don't know about the Excel one though) doesn't allow you to file unless you do all this.

First thing to do is to check with your bank as to what your options are. They might be able to retrieve the challan copy from their records. Also check your mailbox to see if they didn't email you the details.

Second is to check your Form 26AS for the relevant AY. This amount might figure there. If not, it is likely that you selected the wrong assessment year when paying the tax. That particular problem was asked a page or so back and suggestions are available.

[gupta_chd]

Originally Posted by meerkat

IT Deductions - Earning vs. Investing time

I believe there is no such rule nor it is mentioned anywhere on tax portals. Although I have heard of this question from many people. Do not know where did this confusion arise from. Most tax and investment portals advise you to invest in PPF at the start of financial year by 5th April to maximise returns.

There is some rule that investment in PPF for claiming tax benefit should be made only from one's own income but there is no bar on the year in which it is earned.

[meerkat]

Originally Posted by gupta_chd

I believe there is no such rule nor it is mentioned anywhere on tax portals. ...

That is precisely the problem! In absence of clearcut guidelines it is open to arbitrary interpretations by income tax officers. I've heard of cases where 80C deductions were denied for PPF investments of as little as 20000/- when made by the 5th of April!

It will be interesting to know how TBHP members and/or their CAs handle such deduction claims.

[binand]

Originally Posted by meerkat

I've heard of cases where 80C deductions were denied for PPF investments of as little as 20000/- when made by the 5th of April!

I have had a PPF account since 2003. And in every single year I make that payment by the 5th of April (I usually have an RD that matures around the 2nd, then give a couple of days for cheque clearing then/NEFT now). Never have I heard of this problem, nor faced it.

If anyone is bullied that way by the AO then the decision has to be appealed.

[meerkat]

Originally Posted by binand

I have had a PPF account since 2003. And in every single year I make that payment by the 5th of April (I usually have an RD that matures around the 2nd, then give a couple of days for cheque clearing then/NEFT now). Never have I heard of this problem, nor faced it.

If anyone is bullied that way by the AO then the decision has to be appealed.

Thanks. I attach an "anecdote" that I'd found in some forum. The thing is, I have seen several instances of such anecdotes addressing this issue, but NONE from the CBDT side that clearly says that investments for IT deductions can be made anytime during the relevant FY from any source! Do you happen to have seen anything concrete in this regard from the government, or any court verdict that one might point to in case one wants to appeal against a "bullying" AO? Thanks.

I personally file my own returns (max complexity - ITR-2), and find that the information found on the government sites are usually quite comprehensive for my purposes, -- except for this particular issue which the CBDT is completely silent about!

[rdst_1]

Guys, we came across, in what we believe, is a change in how tax is calculated for people who have both agriculture income and other income (whether from salaries, business or any other type of income).
What we believed till now, was the tax was to be calculated only on the taxable income part according to the slabs. However I saw the returns filed by a friend and was shocked to find his calculated taxes to be higher. Then checked on the income tax website and it showed the same calculations. Finally found an article on Coverfox which showed how these calculation were actually made, which are -

Step 1: Let us regard agricultural income as X and other income as Y Tax computed on X+Y is B1

Step 2: Let us regard basic exemption slab for income tax payment as A. Tax computed on A+X is B2

Step 3: The actual income tax liability shall be B1-B2

My question is whether this was the law all along or has it been changed recently to this form of calculation. This increases the tax liability of a farmer with other sources of income (which even include interest on FDs) by a substantial margin depending upon what percentage of his total income is agricultural and which isn't.