13 June 2023
I have received Intimation Seeking information/clarification on the data in the return filed " Adjustment of income araising u/s 143(1)(a)(ii) - Disallowance of expenditure and deduction indicated in return in schedule HP not taken into account while computing the total income".
Actually i had made an error filling Schedule HP. I have mentioned Property 1 as self occupied property which has 0 rental income but by mistake i have mentioned the rental income of Property 2 in Property 1. Please refer to the example below where (1 a) had to be 0 but but mistake i entered 1,00,000. I need to reply to them about this mistake.
Can you please help me formulate a proper reply.
For Ex . Property 1 self occupied property a Gross rent received or receivable or letable value (1 a) 1,00,000 b The amount of rent which cannot be realized (1 b) 0 c Tax paid to local authorities (1 c) 0 d Total (1 b + 1 c) 1d 0 e Annual value (1 a – 1 d) (nil, if self -occupied etc. as per section 23(2)of the Act) 1e 1,00,000 f Annual value of the property owned (own percentage share x 1e) 1 f 50,000 g 30% of 1 f 1 g 15,000 h Interest payable on borrowed capital 1 h 0 i Total (1 g + 1 h) 1 i 15,000 j Arrears / Unrealized Rent received during the year Less 30% 1 j 0 k Income from house property 1 (1 f - 1 i + 1 j) 1 k 0
The Income Tax Officer [Income Tax Ward/Circle Address] [City, State, PIN Code]
Subject: Response to Intimation Seeking Clarification on Schedule HP Error - Adjustment under Section 143(1)(a)(ii)
Respected Sir/Madam,
I am writing in response to the intimation dated [Date of Intimation] seeking clarification on the adjustment of income arising under Section 143(1)(a)(ii) of the Income Tax Act, 1961, specifically related to the error in Schedule HP of my Income Tax Return for Assessment Year [AY].
Upon reviewing the intimation, I have identified the error in the reporting of rental income for Property 1, which is a self-occupied property and does not generate any rental income. However, due to inadvertence, the rental income pertaining to Property 2 was incorrectly entered under Property 1 in Schedule HP of my return.
To clarify:
- Property 1: Self-occupied property with nil rental income. - Property 2: Actual rental income of Rs. [Correct Rental Income of Property 2] was erroneously reported under Property 1.
I acknowledge the error and sincerely apologize for the oversight. Please find the corrected details for Schedule HP below:
- a. Gross rent received or receivable or letable value (1 a): Nil (as Property 1 is self-occupied) - b. The amount of rent which cannot be realized (1 b): Rs. 0 - c. Tax paid to local authorities (1 c): Rs. 0 - d. Total (1 b + 1 c) (1 d): Rs. 0 - e. Annual value (1 a – 1 d): Rs. Nil (as per section 23(2) of the Act) - f. Annual value of the property owned (own percentage share x 1e): Rs. Nil - g. 30% of 1 f (1 g): Rs. Nil - h. Interest payable on borrowed capital (1 h): Rs. 0 - i. Total (1 g + 1 h) (1 i): Rs. Nil - j. Arrears / Unrealized Rent received during the year Less 30% (1 j): Rs. 0 - k. Income from house property (1 k): Rs. Nil
I request you to kindly consider the corrected information provided above for computing my total income for the Assessment Year [AY]. I assure you that this error was unintentional, and I am committed to complying with all provisions of the Income Tax Act.
Enclosed with this letter are copies of the corrected Schedule HP for your perusal and records.
Thank you for your attention to this matter. Please feel free to contact me at [Your Contact Number] or [Your Email Address] if you require any further information or clarification.
Yours sincerely,
[Your Name]
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Make sure to enclose the corrected Schedule HP with your response and keep copies of all correspondence for your records. This structured reply should effectively address the issue and provide clarity on the error identified in your Income Tax Return.
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