• 80tta disallowed

My it assess year 2017-18 processed now only .in their 143-1 notice refund of only 1650 is there where as rs 2500 was expected as per my calculation.in their report my 80tta deduction of rs 3500 was disallowed without any reason and got less refund.what should i do? why this type of arrogant behavior of cpc.
Asked 2 months ago in Income Tax from Kozhikode, Kerala
You should file rectification online by disagreeing to short refund
Vidya Jain
CA, Kolkata
614 Answers
13 Consultations

4.8 on 5.0

Apply rectification under section 154 some times system wrongly disallowed deductions and in 154 allowed the same
Lalit Bansal
CA, Delhi
557 Answers
37 Consultations

5.0 on 5.0

File Online Rectification request to reprocess the case. Make sure you have filed the correct particulars in the return of income with regards to savings bank interest and deduction claim u/s 80 TTA. If the error is not rectified even after disposal of rectification request you may request your jurisidictional AO to assume charge and rectify the mistake.
Lookman Mansuri
CA, Vadodara
20 Answers

5.0 on 5.0

You should file rectification for the same.
Rupali Gupta
CA, Bikaner
14 Answers

Not rated

Dear Sir,

Let me first clarify you that you can claim deduction under section 80TTA only on savings bank account.You can not get deduction under section 80TTA on bank fixed deposits & recurring deposits.

You should file rectification u/s 154 online only if they have disallowed interest on savings bank account .

Bank statements of your savings account will be enough to help you calculate your interest income and tax deduction on such income. 


Warm Regards,
Karishma Chhajer
Karishma Chhajer
CA, Jodhpur
295 Answers
1 Consultation

5.0 on 5.0

Dear Sir,

There might be two possibilities:
1. You would have claimed deduction but you would not have reported the income under the head Income from other sources or your income from interest is more than 10,000 as maximum deduction allowed u/s 80TTA is 10,000.
2. There might be an error on part of income tax authorities.

In first case the order sent u/s 143(1) is correct.
In second case you can approach A.O. of your jurisdiction along with your bank statement stating the exact amount of interest earned during the year. Upon submission they will rectify the order.

Hope this solves your queries.
Siddhant Shah
CA, Mumbai
87 Answers

5.0 on 5.0

Please share copy of notice and ITR. Plz check your interest source again. It is only allowed on banks and post office saving accounts.
Vivek Kumar Arora
CA, Delhi
1421 Answers
31 Consultations

5.0 on 5.0

Hi Dear,

It may look like you filled your return manually through excel form. In Excel utility if you leave bank interest as NIL under other sources and fill up 80TTA deduction it may not allow the same at time of 143(1). In such case you may opt for rectification under section 154 for mistake apparent from record. Report your SB Ac interest correctly in revised return under section 154.
Amit Aggarwal
CA, New Delhi
20 Answers

Not rated

Hi,

Hope you are doing well !

First, please check your source of income. You may forgot to show the income under the head income from other sources. 

Deduction limit u/s 80TTA:

Interest income earned from a savings account up to Rs. 10,000 is tax deductible from the gross income.
Any interest earned over and above Rs. 10,000 is considered “Income from Other Sources” and therefore taxable.
In other words, maximum deduction allowed u/s 80TTA is Rs. 10,000.

If everything is in order then you can online file application u/s 154 for rectification. 

Thanks & Regards,
Payal Chhajed
Payal Chhajed
CA, Mumbai
722 Answers
2 Consultations

4.8 on 5.0

Hi

Had you mentioned interest income under the head Income from other sources?

ITR form needs to be checked for knowing the reason of disallowance. If everything is right, request can be made for higher refund. 

Feel free to contact in case of further query.
Lakshita Bhandari
CA, Mumbai
2017 Answers
63 Consultations

5.0 on 5.0

please provide me the below mentioned documents
01. copy or return filed by your
02. copy of computation of income
03. copy of intimation under section 143 (1) of the IT act
then after we can provide solution for that
Bhadresh S Mevada
CA, Surat
49 Answers

Not rated

There can be 2 reasons for the same.

1. You may not have shown the interest under Income from other sources and if this is the case then the notice sent by the IT department is correct.
2. There may be an error on part of the IT department. In this case you can file rectification u/s 154. 

Hope that clarifies. You can get in touch for further clarifications.

Regards,
Nikhil.
Nikhil Khanna
CA, Mumbai
1188 Answers
9 Consultations

5.0 on 5.0

Have you included these 80tta amount under Income that is Interest earned from saving bank account?
If no then these may be the reason for short refund. And if included then file rectification.
Swati Agrawal
CA, Indore
619 Answers
1 Consultation

5.0 on 5.0

Deduction under section 80TTA will be allowed only if you have shown income of Rs. 3500 as interest from saving bank a/c otherwise it will be disallowed.

if you have shown income of Rs. 3500 as interest on saving bank a/c and still it is disallowed then you can file rectification in e filling portal of Income Tax. file the rectification again until they allow the deduction or transfer it to Assessing officer once the case transfer to A.O. write the letter to AO and attached the bank statement as evidence. then they will definitely allow the deduction.

Thanks.
Narendra Sonagra
CA, Ahmedabad
29 Answers

Not rated

Hi,
80TTA will be allowed only if the Income from Savings Bank Account is first offered to tax. Kindly check whether SB Interest was shown in Income from Other Sources. Also, if there was any set off losses, then also there may be chances of 80TTA dis-allowance.

Request you to e-mail the Intimation so that I can answer your query in a better manner
Pradeep Bhat
CA, Bengaluru
477 Answers
30 Consultations

5.0 on 5.0

Can you please let me know Rs. 3500 Interest income earned from a savings account or from fixed/term deposits.
Payal Chhajed
CA, Mumbai
722 Answers
2 Consultations

4.8 on 5.0

If you have correctly entered all particulars then you don't have anything to worry about. 143(1) is processed by system and sometimes due to certain mismatch errors, 143(1) is processed erroneously. You can file your rectification application and wait for the result. The errors are rectified in most of the cases.
Lookman Mansuri
CA, Vadodara
20 Answers

5.0 on 5.0

Sometimes it may be due to computer error, so you can file rectification online in your ID in income tax return filling site
Vidya Jain
CA, Kolkata
614 Answers
13 Consultations

4.8 on 5.0

If this interest income earned from a savings account only then you should file rectification application online.

It may be system error.
Payal Chhajed
CA, Mumbai
722 Answers
2 Consultations

4.8 on 5.0

Do you have capital gain income in your last year ITR?.No deduction is available from capital gain income. What was your gross total income?
Vivek Kumar Arora
CA, Delhi
1421 Answers
31 Consultations

5.0 on 5.0

Dear Sir,

If everything is in order then it is a system error. 

Just file online rectification application u/s 154 though income tax website and wait for sometime.

Warm Regards,
Karishma Chhajer
Karishma Chhajer
CA, Jodhpur
295 Answers
1 Consultation

5.0 on 5.0

Hi,

You can file rectification in section 154 against the intimation u/s 143(1).

However, I have not seen such kind of dis-allowance without any reason. I would request you to recheck your ITR and see whether have you correctly claimed 80TTA.

80TTA is allowed only in respect of saving bank interest.
Abhishek Dugar
CA, Mumbai
3456 Answers
156 Consultations

5.0 on 5.0

Because these amount to be included in interest column in income from other head sources. First we include it in income then take deduction for the same ,maximum deduction amount is 10000.

Hope it help
Swati Agrawal
CA, Indore
619 Answers
1 Consultation

5.0 on 5.0

It is very difficult to know the reason without reviewing the documents. There seems some misreporting in the ITR.

If you're sure about the return being correctly filed and the mistake by CPC, please get a rectification done. It is advisable to take professional help in this regard.
Lakshita Bhandari
CA, Mumbai
2017 Answers
63 Consultations

5.0 on 5.0

It looks strange but if this is the case, you can file a rectification u/s 154.

Please get in touch for any further clarifications.

Regards,
Nikhil
Nikhil Khanna
CA, Mumbai
1188 Answers
9 Consultations

5.0 on 5.0

Dear Sir,

You can approach A.O. of your jurisdiction along with your bank statement stating the exact amount of interest earned during the year. Upon submission they will rectify the order.
Hope this resolves your queries.
Siddhant Shah
CA, Mumbai
87 Answers

5.0 on 5.0

provide us the details
Bhadresh S Mevada
CA, Surat
49 Answers

Not rated

If you have reported other income Rs. 8000 then Claimed of deduction rs. 3500 shall be allowed so file the online rectification they will definitely allow or will transfer the case to A.O. and then write the letter to A.O. with evidence.
Narendra Sonagra
CA, Ahmedabad
29 Answers

Not rated

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