Taxontips
No Result
View All Result
Tuesday, June 6, 2023
Login/ Register
  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
Talk to an Expert
  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
No Result
View All Result
Taxontips
No Result
View All Result

Notice u/s 143(1)(a) for A.Y. 2019-20 for various reason such as Capital gain, Late fee etc:

Income tax Expert by Income tax Expert
December 21, 2019 - Updated on March 26, 2020
in Income Tax News
2
Notice u/s 143(1)(a) for A.Y. 2019-20 for various reason such as Capital gain, Late fee etc:
225
SHARES
2.8k
VIEWS
image_pdfPDFimage_printPrint

Notice u/s 143(1)(a) is an initial processing of return after it has been filed u/s 139 or 142(1) and such notice is issued in relation to various reasons such as arithmetical error, incorrect claim etc and after replying to such notice you will receive intimation u/s 143(1) of the Income Tax act. Notice u/s 143(1)(a) is available under E-proceedings tab of e filing website.

Capital gain u/s 112A of Income tax act:

Income tax department has started processing Income tax return and most of the people have started receiving notice u/s 143(1)(a) and most of them have same query with regard to income from Long term capital gain u/s 112A of the Income tax act. To explain in short such capital gain income is attracted when you have sold a listed equity share, equity oriented fund etc which you were holding for more than 1 year.

As soon as people filed their Income Tax return for A.Y. 2019-20 they have started receiving notice u/s 143(1)(a). The reason for such notice is:

Schedule CG in the ITR for AY 2019-20 (first released on 5.4.2019) did not provide for such calculations scrip wise, compelling the taxpayer to file the ITR and offer LTCG by manual entries. The ITR utility which was released in August 2019 provided an option to the assessee to either enter the Long Term Capital Gain scrip wise or on totality basis.

As the due date was around the corner, most of the taxpayers or tax professionals have gone for the second option based on the workings available with them and filed the ITR with amounts offered on totality basis in Schedule CG.

While processing the returns u/s 143(1)(a), CPC has picked up Cost of Acquisition as Higher of (i) and (ii) as mentioned above, which is based on TOTALs and not scrip wise/ transaction wise. This has led to computation of an income under Capital Gains much higher than what it is as per the provisions of Section 112A, 55(2)(ac) and FAQs (dated 4.2.2018).

One more issue in respect of LTCG computation is that the system is considering LTCG from shares acquired between 1-2-2018 to 31-3-2018 without deduction of cost of acquisition, i.e. the whole of sale consideration is considered as gains. For eg. If you were allotted shares in an IPO after 1-2-2018 for Rs.2,000/- and sold the same on say 15-3-2019 for Rs.4,000/-, then system is considering the whole of Rs.4,000/- as LTCG.

Right now the best option is to disagree with such adjustment and wait for clarification from Income tax department.

Charging of late fee of Rs. 5,000 in case of partners of audited partnership firm:

The Return of Income for firms subjected to tax audit and their Partners were to be e-filed by 31st October, 2019 as per Section 139(1) of the Act. Despite the Firm and Partners of such firm e-filing their returns of income before 31st October, 2019, CPC has levied a penalty of Rs. 5,000 as Late Filing Fees under Section 234F of the Act.

However this issue was later on rectified by CPC by issuing a circular. Hence if any partner has received any such notice just reprocess your return.

Issuing defective notice u/s 139(9) of the Income Tax act:

CPC has even issued defective return notice u/s 139(9) to various assessee where their total income as shown in Form 26AS is less than the income shown in their Income Tax return.

CPC must understand that many a times the deductor deducts tax on amount including GST or doesn’t reverse TDS on sale return and therefore deductee would claim TDS on such amount as he would have received less amount from purchaser but he/she cannot include such amount as his/her turnover in their return of income just to match the income with Form 26AS. Also by declaring the return as defective they have made it null and one cannot file an appeal also against such notice.

All the above are causing unnecessary harassment to tax payers and resulting in waste of national resources in terms of having to file applications for rectification. Therefore it is requested to CPC to issue intimation for such issue rather than declaring such return as defective so that same can be appealed before an authority and this gets resolved.

The same plea has been made by BCAS (Bombay Chartered Accountant Society). You can read the same here.

If you need assistance you can ask a question to our expert and get the answer within an hour or post a comment about your views on the post and also subscribe to our newsletter for latest weekly updates.

image_pdfPDFimage_printPrint
Previous Post

Waiver of interest for payment of TDS u/s 194M of the Income tax act

Next Post

E invoicing under GST

Related Posts

Last opportunity to file Income tax return for F.Y. 2018-19 | Belated return u/s 139(4) of the Income tax Act
Income Tax News

Condonation of delay in filing refund claim and claim of carry forward of losses under Section 119(2)(b) of the I.T. Act

June 5, 2023
Guidelines for manual selection of returns for Complete Scrutiny during the financial-year 2019-20-
Income Tax News

Due date for filing SFT extended from 31.05.2023 for FY 2022-23?

June 1, 2023
Guidelines for manual selection of returns for Complete Scrutiny during the financial-year 2019-20-
Income Tax News

E-appeal scheme, 2023 announced by CBDT, JCIT(A) will now hear appeal [Read notification]

May 31, 2023
Guidelines for manual selection of returns for Complete Scrutiny during the financial-year 2019-20-
Income Tax News

Limit of exempt income for leave encashment for non-govt employees increased to Rs. 25 lakh [Read notification]

May 30, 2023
ICAI has announced a new MBA programme for Diploma in Management and Business Finance
Income Tax News

ANNUAL FEE CIRCULAR 2023-24 by ICAI for it’s members

May 29, 2023
Amendment in provisions relating to taxability of income of trust by Finance Act, 2021
Income Tax News

Extension in time limit for filing Form 10A, 10AB, 10BD, 10 etc. in relation to trust under Income tax act

May 26, 2023
Next Post
E invoicing under GST

E invoicing under GST

Comments 2

  1. Pingback: Individuals, company and trust are receiving notice u/s 143(1)(a) - This is the reason - Taxontips
  2. Pingback: Many people, company and trust are receiving notice u/s 143(1)(a) - This is the reason - Taxontips

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Google Custom search

Recent Posts

  • Condonation of delay in filing refund claim and claim of carry forward of losses under Section 119(2)(b) of the I.T. Act
  • ₹1,57,090 crore gross GST revenue collected for May 2023; clocks 12% Year-on-Year growth
  • Due date for filing SFT extended from 31.05.2023 for FY 2022-23?
  • E-appeal scheme, 2023 announced by CBDT, JCIT(A) will now hear appeal [Read notification]
  • Limit of exempt income for leave encashment for non-govt employees increased to Rs. 25 lakh [Read notification]

Recent Comments

  • Notification under PMLA by Ministry of Finance which could affect CA, CS and CMA - Taxontips on CA, CS and CMA now under PMLA. KYC of clients required
  • ITR 4 is now available on e-filing website for FY 2022-23 i.e. AY 2023-24 | File ITR with experts on Taxontips – Taxontips on Businessman with turnover below 1 crore and having profit below 8% need to compulsorily get books of accounts audited: Let’s find out
  • Can a person earning income from speculative business transaction file return u/s 44AD of Income tax act - Taxontips on How to calculate turnover in case of intra day and future and option trading for Income Tax purpose?
  • Extension of last date for updation of Member’s Profile with GSTIN at Self Service Portal – Till 23rd April, 2023 - Taxontips on Updation of Member’s Profile at Self Service Portal with GSTIN to get GST credit till 15.04.2023
  • Akshay Kadam on New error faced in the new Income tax e-filing portal related to log-in of an assessee | E-filing 2.0

Categories

  • Budget News
  • Business & Other News
  • Case Laws
  • GST news
  • Income Tax News
  • News

Browse Topics by Date

June 2023
M T W T F S S
 1234
567891011
12131415161718
19202122232425
2627282930  
« May    
  • GSTR 9/ 9C extended : AGAIN

    GSTR 9/ 9C due date to be extended to 31.10.2020 | E-invoicing will be voluntary in the beginning

    6456 shares
    Share 2582 Tweet 1614
  • How to pay Membership and COP fees of ICAI for 2020-21 |

    6344 shares
    Share 2538 Tweet 1586
  • Code/ Nature of payment 6CR updated by NSDL in challan 281 for paying TCS on sale of goods

    5679 shares
    Share 2272 Tweet 1420
  • Are all the due dates of tax audit and Income tax return for FY 2019-20 extended to 31.03.2021 by the bill presented in Lok sabha Dt. 18.09.2020

    4771 shares
    Share 1908 Tweet 1193
  • SFT transaction mentioned in Form 26AS | What does it mean? | Who reports it? | SFT codes transaction type

    3991 shares
    Share 1596 Tweet 998

Recent Notification

Last opportunity to file Income tax return for F.Y. 2018-19 | Belated return u/s 139(4) of the Income tax Act

Condonation of delay in filing refund claim and claim of carry forward of losses under Section 119(2)(b) of the I.T. Act

June 5, 2023
GST registration

₹1,57,090 crore gross GST revenue collected for May 2023; clocks 12% Year-on-Year growth

June 2, 2023

RSS Taxontips

  • Condonation of delay in filing refund claim and claim of carry forward of losses under Section 119(2)(b) of the I.T. Act
  • ₹1,57,090 crore gross GST revenue collected for May 2023; clocks 12% Year-on-Year growth
  • Due date for filing SFT extended from 31.05.2023 for FY 2022-23?
  • E-appeal scheme, 2023 announced by CBDT, JCIT(A) will now hear appeal [Read notification]
  • Limit of exempt income for leave encashment for non-govt employees increased to Rs. 25 lakh [Read notification]
  • ANNUAL FEE CIRCULAR 2023-24 by ICAI for it’s members
  • Instructions for conducting scrutiny of returns for FY 2019-20 onwards under GST [Read instructions]
  • Extension in time limit for filing Form 10A, 10AB, 10BD, 10 etc. in relation to trust under Income tax act
  • GUIDELINES FOR SPECIAL ALL-INDIA DRIVE UNDER GST
  • Government issues guidelines to calculate net winning for section 194BA of the Act [Read circular]

Categories

  • Budget News
  • Business & Other News
  • Case Laws
  • GST news
  • Income Tax News
  • News

Site menu

  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
Taxontips

TaxOnTips provides you all tax related solutions in easy way and update you with its regular updates & notifications Visit us for details.
We are based in Jaipur, India

© 2019-2023 Taxontips.com - Tax assistance at your Fingertips

No Result
View All Result
  • Login/Signup
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • About us
  • Contact us
  • Ask an expert/ Talk to an expert
  • Q & A
  • Privacy Policy
  • Terms of use

© 2019-2023 Taxontips.com - Tax assistance at your Fingertips

Book Phone consultation with expert

Sitting home or at your office and don't have time to visit CA's office or don't know where to consult CA. Book your consultation with an expert practicing Chartered Accountant and get your query solved.

Book a phone consultation for 30 minutes with our expert at a very basic cost.

Book consultation

No thanks, I'm not interested!