Income Tax department reportedly sent thousands of tax notices to individuals. Here’s why TAXCONCEPT

Taxpayers are in a frenzy in many parts of the country owing to notices received by the Income Tax department.

According to a Moneycontrol report, tax notices under Section 143 (1) have been sent to taxpayers across Maharashtra and Gujarat questioning why they have claimed deductions under Section 80 P.

Notably, only cooperative societies can claim deductions of around ₹15,000-20,000 if they earn income from a banking or credit facility, agricultural activity and cottage industry

An Ahmedabad-based chartered accountant Raju Shah while informing about the situation told Moneycontrol, “Incorrect notices regarding proposed adjustments under Section 143 (1) (a) are being sent for claiming Section 80 P deductions. But we haven’t claimed these deductions for our clients as they aren’t eligible to claim them. These are sent not for returns filed by cooperative societies, but individual,

The notices emailed state that deductions under Section 80 P cannot be claimed for the assessment year 2023-23 and asked the concerned taxpayers to respond to them in a 15-day timeline.

The Moneycontrol report while quoting another Chartered accountant noted that many high-net-worth individuals have received scrutiny notices for the 2022-23 assessment year. This is owing to the individuals who have claimed several deductions being alerted by an artificial intelligence software which detects if some deductions are prima facie not possible.

Source link

Leave a Comment