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Mihir Tanna |975 Answers |Ask -Follow

Tax Expert - Answered on Oct 18, 2022

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Question by Pallavi on Oct 18, 2022Hindi

On downloading my AIS and 26AS for AY 2022-2023 in June this year I found that interest paidfor Rs.60000 and TDS Rs.6000 each on 04/08/202 and 09/02/2022 on someone else's Taxable Savings Bonds with a Punjab National Bank branch has been wrongfully reported in my PAN in IT Portal besides my interest. I mailed complaints to their customer care, submitted written complaint with the branch and mailed multiple times but to no avail. After I lodged complaint with RBI Ombudsman they replied and also to RBI that mistake has been rectified on 29 Jul '22. On that basis I submitted my ITR on 30/7/22 excluding interest income of Rs 120,000 and TDS Rs 12,000 not pertaining to me.

I also submitted feedback in AIS. But the AIS is showing this interest.

I did not verify my ITR as the rectification done by bank is not yet reflected in my 26AS. After I lodged complaint again with RBI Ombudsman on 23/08/22 the bank replied that correction would be done within seven days. I also registered my issue in MY GRIEVANCE Portal on 12 SEP '22 but no further response is received and the mistake is still there.

Sir, kindly advise me what shall I do now?

Ans: I understand you would have complied with verification requirement within prescribed time limit of 120 days.

With reference to wrong amount appearing in 26AS, as you have already taken appropriate steps, you can wait for 26AS updation.

If any tax demand is raised before 26AS updation, you have to contact CPC department of Income Tax. Through telephonic talk you have to explain the issue and request them to transfer your ITR to jurisdictional assessing officer (AO) so demand is deleted.

Once ITR is transferred to AO, you can explain to issue to AO, file copy of your communications/grievances.

You can request AO to look into issue and communicate with TDS deductor who has wrongly reported.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Mihir Tanna |975 Answers |Ask -Follow

Tax Expert - Answered on Sep 29, 2022

Question by Durga - Sep 29, 2022Hindi

Dear Mr Tanna, Before soliciting your sincere opinion I must first congratulate and compliment you for the benevolent job being done to alleviate the problems being faced by the solo taxpayers from the pounce of the IT Office. I would request you to go through my problem which is very much exhaustive and moreover disheartening for the busy people like you. I am a retd employee from LIC in the FY 2020/21. In FY 2021/22 I had received arrears of salary along with commutation of pension and leave encashment. The employer while finalizing the IT for 2021/22 had deducted IT giving the exemption for comm pension, 80CC and 80D without the benefit under sec 89. While filing IT I could see the effect of AIS. Without any further deduction except under 80 TTB, I tried to confirm the Total Taxable Income as per 26AS/AIS. The self-assessed tax was to be paid on three dates because of the ATM limit etc. The last payment which was on 28th July, could not be successful and was debited on 29th as a result I could not add the CIN No etc., on the Add box of tax payment. Since the total amount of tax was paid before the last date i.e 31st I did submit a short paid ITR presuming it would be taken care of. On 1st Aug I received a message under sec 143 with a demand due for 4660/. The e-file status was showing the ITR is under process with O/S demand Nil (four Green tick was displayed). Till Aug 30th when I found the ITR is not accepted despite the grievances as cited above, again I paid the balance amount going thru the demand due option, there also I faced the same problem from bank. The amount could be debited on 31St Aug. I did pay the amount thinking the ITR and tax deposit are different Module. Moreover after filing ITR I made a query with the ITO regarding exemption of Transfer grant which should have been allowed at source. They denied it under pretext that no further exemption after filling. In order to see the last payment due appear under SAT head I had submitted a grievance which was not seen till I spoke to the help desk. One reply came with so many tags to file revised IT under section 131 (5). While I visited for re-file, I could see the interest amount along with an increased taxable income thus returned back. Now my questions are: 1. How the taxable income would vary when a letter under 143 is issued with a demand? 2. If I am to re-submit the ITR under Sec 131 (5) can I restrict the taxable income to the earlier one? 3. Can they alter the taxable income when Sec 143 is invoked? 4. Finally, should I conform to the query or wait till they make their earlier demand set right. Sir I had filled it by myself without the help of a professional. Your opinion would be mostly an antidote against the IT virus that has made me upset. Eagerly awaiting your reply.

Ans: Thank you so much for your compliment. Looking at your facts, I wish you could have got professional advice on 1^st August itself. My views on your queries are as follows:

I understand you are using online feature of filing Income Tax Return at www.incometax.gov.in wherein data is prefilled based on information reported by different persons (like employer for salary, bank for interest income, company for dividend income, TDS deductor for TDS deducted and amount of income credited, etc.). In your case, it might be possible that reportable entity has revised its data for reporting to income tax department and accordingly amount appearing in intimation issued u/s 143(1) differs from amount auto populated while filing income tax return u/s 139(5) of Income Tax Act using online feature.

It is not advisable to restrict auto populated income unless income auto populated at e-filing portal is incorrect. Check AIS for income auto populated at e-filing portal. If income appearing in AIS is incorrect, you can file feedback for AIS and offer actual income to tax while filing return u/s 139(5) of the act which allow tax payer to revise return by rectifying mistakes.

Yes, income tax provides updated figure at portal even if intimation is issued u/s 143(1) of the Act, as revised figures is provided by the payer of income or person authorised as reportable entity.

I understand you are talking about self-assessment tax paid by you and not auto populated in relevant schedule of ITR. Reason for the same can be wrong selection of year or code while making payment or while uploading challan details by the bank. Please check 26AS for self-assessment tax paid, if the same is not appearing in 26AS of AY 2022-23, you have to discuss said issue with Jurisdictional officer.

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Mihir Tanna |975 Answers |Ask -Follow

Tax Expert - Answered on Oct 11, 2022

Question by Clarissa - Oct 11, 2022Hindi

Thank you for offering advice to us who have no way to get our problems solved. I filed my returns according to AIS. My Returns were pre-filled. In it Interest from Post Office NSC was included in lump sum of 5+ years. I approached the PO for an annual interest certificate but they refused saying you should do your own calculations and the PO does not issue Interest certificates. In the absence of this, I filed my returns with an amount much higher than received or accrued. I had to pay a high tax. Should not POs issue certificates if the Interest is shown in AIS?

Ans: I understand your concern but in my view rather than discussing on POs’ responsibility. I will advise you to check interest amount from calculator provided by income tax at website here (external link).

If the amount of taxable interest is lower than amount appearing in AIS, you may write to concerned authorities of NSC and after confirming amount of interest, if it is observed that interest amount shown in AIS is higher, you can provide feedback at income tax portal at given place.

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Mihir Tanna |975 Answers |Ask -Follow

Tax Expert - Answered on Dec 17, 2024