06 October 2022
OUR'S IS A COOPERATIVE BANK . WE FILED RETURN UNDER NEW SCHEME U/S 115BAD. IN THIS CONNECTION WE RECEIVED NOTICE U/S 143(1)(a)(ii) "In schedule AMT, Sl.No.1 is not equal to Sl. No.13 Total Income of Part BTI. Hence amount at Sl.No.1 of schedule AMT is recomputed accordingly,"
06 July 2024
The notice you received under section 143(1)(a)(ii) regarding Schedule AMT typically pertains to the computation of Alternate Minimum Tax (AMT) under the provisions of the Income Tax Act, particularly when a return has been filed under section 115BAD, which deals with tax on income of certain co-operative societies.
### Understanding the Notice
1. **Section 115BAD and Return Filing:** - Section 115BAD provides for a special tax regime applicable to certain co-operative societies, where tax is calculated at a flat rate on total income.
2. **Notice under Section 143(1)(a)(ii):** - This section of the Income Tax Act allows the Assessing Officer (AO) to issue a notice for preliminary assessment. The notice suggests that there is a discrepancy between: - **Sl.No. 1 of Schedule AMT:** This likely refers to the income or adjustments reported under AMT. - **Sl.No. 13 Total Income of Part BTI:** This could refer to the total income as computed in Part BTI (Business Total Income) of the return.
3. **Recomputation Requirement:** - The notice states that Sl.No. 1 of Schedule AMT needs to be adjusted to align with the Total Income of Part BTI. This indicates that there might be an inconsistency or discrepancy in the income figures reported under AMT compared to the total income calculated under Part BTI.
### Steps to Address the Notice
To address this notice effectively:
- **Review the Filed Return:** Carefully review the return filed under section 115BAD and cross-check the figures reported in Schedule AMT (Alternate Minimum Tax) and Part BTI (Business Total Income).
- **Identify Discrepancies:** Identify where the discrepancy lies between Sl.No. 1 of Schedule AMT and Sl.No. 13 of Part BTI. This may involve reviewing calculations, adjustments, and income figures reported.
- **Recompute and Correct:** If there are errors or differences found, recomputate the figures as per the notice's requirement. Ensure that Sl.No. 1 of Schedule AMT matches the Total Income of Part BTI as per the guidelines provided in the notice.
- **Prepare Response:** Prepare a response to the notice addressing how the discrepancy occurred, if any corrections were made, and provide revised calculations if necessary. Ensure all supporting documents and computations are included.
### Seeking Professional Advice
Given the specific nature of cooperative banks and tax implications under section 115BAD, it may be beneficial to consult with a tax professional or a chartered accountant who specializes in cooperative societies and income tax matters. They can provide tailored advice and assistance in preparing a comprehensive response to the notice, ensuring compliance with income tax laws and regulations.
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