Notice of demand under sec 156 in terms of section 143(1)

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Prasad (Querist)
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20 December 2012 Respected Sir,

I had filed return for the year 2008-09, where as per the calculation, I was eligable to get refund,

The income tax depart has send the refund, along with notice

which say
"this intimation is deemed to be a notice of demand under sec 156 in terms of sec 143(1) of income tax act 1961. The amount is required to be paid within 30 days of the services of intimation.

Please guide me

Regards
Prasad

Abhijit

Abhijit (Expert)
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20 December 2012 First Check the intimation u/sec 143(1) & check the tax calculated by u & AO. As he caanot send the refund if you have tax liability it should be adjusted against your refund. And if such things happen go for the rectification u/sec 157. rectification is possible only when there is a prima facie mistake in the intimation.

Prasad

Prasad (Querist)
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20 December 2012 Hi Abhijit,

Thank you very much for you quick reply.

I have a question.

senarion
I have a property in mumbai and I am working in Chennai and I am staying in rented house in chennai.

I have a housing loan for the said property, The property is not rented.

My question is
Can I get exemption for the principle and interest paid for the home loan and also can I get exemption for the HRA since I am staying in a rented house in different stat.

Please guide me.

Thanks & Regards
Prasad

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Abhijit

Abhijit (Expert)
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21 December 2012 As your job in Chennai, you did not own property at Chennai for the exemption of HRA. And you would also get the benefit of repayment of Interest & Principle amount of Mumbai house. The only thing is that you would get 2nd benefit if you paid all the installment. For HRA benefit you have to check out condition for exemption u/sec 10.

Prasad

Prasad (Querist)
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21 December 2012 Hi Abhijit,

Thanks you very much for you reply. I did not understand "The only thing is that you would get 2nd benefit if you paid all the installment"

Do you mean the EMI for the home loan ??

Thanks & Regards
Prasad