Income Tax Notice: Thousands of taxpayers are getting income tax notices even after filing the correct Income Tax Return (ITR). Know why.
Income Tax Notice:
The last date for filing ITR for the business year 2022-23 and assessment year 2023-24 was 31 July. Now refund is being issued by the Income Tax Department on the returns filed by the taxpayers. Along with this, income tax notices are also being sent to many taxpayers. According to the information, once again thousands of people have received notices and their reply has also been sought within 15 days. In the notices sent to thousands of taxpayers across Maharashtra and Gujarat under Section 143 (1), they have been asked why they claimed tax deduction under Section 80P.
What is Section 80P?
This deduction is not available to individuals but only to co-operative societies. Under section 80P, if a co-operative society generates income from banking or credit facilities, agricultural activity and products or cottage industry, they are offered a deduction of Rs 15,000 to Rs 20,000 while computing their total income.
What is the matter?
As reported by Moneycontrol, Ahmedabad-based Chartered Accountant Raju Shah said that wrong notices are being sent under section 143(1)(a) to claim section 80P deduction. We have not claimed these deductions for our customers as they are not eligible to claim the same. These are not being sent for the returns filed by the cooperative societies, but for the Individual Income Tax Return.
System error!
The emailed notice states that deduction under section 80P cannot be claimed or allowed for the assessment year 2023-24, hence the individuals have to respond to the notice within the given deadline of 15 days.
