If your tax return for financial year 2019-2020 was pending for processing, do check your emails or make a quick call to your chartered accountant to assess whether a notice has been sent. Chances are that the notice would talk about declining a tax benefit to you even though you are eligible for it.
For instance, Ritesh Jain (name changed) had declared a rental income of Rs 2.24 lakh, based on the amount he received during the financial year 2019-20. Instead of taking the rental income into account, the system has assumed that Jain had asked for deduction of interest for home loan and added Rs 5 lakh to total income.
Another lady from Delhi filed a belated return. So, the rule for delayed returns state that no other losses can be adjusted except for loss from house property. “Even though she has claimed loss from house property, the notice states that since the return was filed belatedly, the loss from house property cannot be claimed,” says Karan Batra, founder of Chartered Club of India.
These are not isolated cases, as several chartered accountants have received the notices for their clients. “We are receiving so many notices under Section 143 that are erroneous in nature. These notices pertain to assessment year (one year succeeding financial year) 2020-21,” says Ameet Patel, tax partner at Manohar Chowdhary and Associates.
These notices are mostly for the complicated and belated returns that were pending processing last year and, for many of these, the refunds had been delayed by at least 7-8 months.
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