Communication of proposed adjustment u/s 143(1)(a): How to resolve?

I e-filed and received an email from the Income Tax Department. When does this communication mean?

If you have claimed investments under Section 80C or HRA that are not mentioned in your Form 16, you are likely to receive an email from the Department asking you to explain the mismatch.

 

Open the notice and scroll down to Page 2 to understand the difference. 

       

The mismatch is due to an extra deduction of Rs.20000 that's not in the Form 16. 

Taxpayers who have also had savings bank account interest or income from fixed deposits or house property that's not included in the Form 16 may also get this email. 

 

How should I respond to this notice? 

• Gather all your supporting documents (rent receipts, life insurance statement, home loan interest certificate etc). 
• Then log in to the Department website and go to E-Proceedings > E-Assessment/Proceedings 
• Select 'Submit' on the next screen

     

• You will see a list of all mismatches here same as the ones you've received in the email. 

   

 

• Click on the dropdown under Response 
  • Agree to addition: If you have forgotten to include income from fixed deposits etc that are mentioned in your Form 26AS, select this option.
  • Disagree to addition: If you have added deductions in your tax return directly and have necessary proofs for it, then select this option.

 

• When you  disagree, you'll see a section open up where you can select from a list of reasons. You'll also need to attach supporting documents before you submit your response. 

 

 

• TAN: Enter the TAN of the employer (available in the Form 16) 
• Deduction made under section: Enter 192 if you have made a deduction against salary income
• Amount paid/credited by deductor: Check your Form 16 Part A for this number. 
• Income/Gross Receipt as per return: Enter the income after taking the deduction into account. 

 

Scroll to the right. 

       

• For HRA, select the reason Allowance exempt claimed in return but not in Form 16
• For all Section 80 deductions, select Deductions claimed in the return but not in Form 16

 

• Once you've submitted, you will see an acknowledgement screen.

 

When should I revise my return?

If you have opted to file revised return, then you must file a revised return within 15 days. 

 

What happens if I don't respond to the notice within 30 days?

In case, no response is received within 30 days, the tax return will be processed after making necessary adjustments mentioned in the 143(1)(a) communication.