How to respond against intimation u/s 143(1)a

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2018 i have received an intimation u/s 143(1)a for difference in salary income in return & 26as. the figure for salary income is correctly filled by me and was taken from form16 issued my my employer which is less than that is appearing in 26as. however, the figure for tds deducted/deposited is same in both the forms. to the best of my knowledge, my employer remit tds on monthly/quarterly basis and reports the gross income which is paid to me on monthly basis. however, form16 is prepared on completion of year and income under the head salary is reported after considering any exempt allowances/perks/perquisites. therefore, this difference is there in income but no difference in tax which is calculated for taxable income. since, there is no provisions of attaching form 16 during online filing of return, tax officers are not able to see and they assumed the figure in 26as.

now, when i am trying to respond using my online account, none of the options given is applicable for the difference in amount. i am left with no option other than saying the fact (in any other reasons column of the response form) that i have reported the figure from form16 which is correct and there is no difference in taxable income from form16 & my return. however, till that page, i am finding only 3 links for submit, save as draft, back and i am not finding the option to attache form16 that was issued by my employer. i am not sure if i press the submit button, further pages will provide/allow me a link to attach form16. in case it is not there, tax official will again not have that figure & they will compare the figure from 26as. besides, my response form is somehow different from what i am able to see on internet pages while browsing for some help/guidance. it seems, all the response columns are for salary income categories & any other reason.

what to do & how to respond. i do not have any additional tax liabilities. but if i do not respond appropriately, they may not consider and they will issue tax demand unnecessarily.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 May 2018 the difference would normally get explained through section 10 deductions. Please see how you have reported salary in tax return. In case the details have not been shared, just provide details for the difference between Form 26AS number and Net taxable salary.

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2018 thanks for the reply. but my case is slightly different. in fact, what employer does, it reports income & tds from the beginning month itself and income is gross income which includes exempt income also. towards the end months, employer calculates the tax based on taxable income and issues us the form16 with taxable income. therefore tds amount does not vary but the income in 26as remains higher than form16. when we file return, we use form16 figures but there is no provisions for uploading it and therefore this is the problem. i am not finding the way to upload even now while trying to respond. as far as section 10 is concerned, the exempt income does not contain anything on which employer pay taxes, it is simply not taxable, but while giving monthly salary and reporting to tax officials they report the whole income but the tds is estimated on taxable income only which is fine tuned in the last month. we do not have the internal details with us. they simply issue form16 that we use. i do not understand how to respond.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 May 2018 No need to worry. I have faced similar issue for my client. No need to attach form 16 and it is not possible. Explain the difference and say return filed as per form 16 and submit the response the return will be accepted and processed as filed.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2018 Thank you sir. Do I need to explain the difference by selecting something relevant for exempt income u/s10 (because this is the real case, but I do not have internal details, it is with employer, but they will not bother to give it saying they have already issued form16 which has considered this exempt & that is why income in return is less, as per form16, than in 26as) and further say in any other reason column that return has been prepared according to form16 issued by employer. Is doing either of these required or both need to be done. Do I then need to submit without caring for uploading form16, which I do have or other proof, that I do not have. Because after submitting I may not get the opportunity to upload anything. Please reply me once more atleast.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 May 2018 They have form 16 you need not upload. Explain the difference and say return filed as per deduction allowed in form 16. No need to worry return will be processed as filed.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2018 That is the catch sir. They have form16 which is available from traces, i.e. 26as & there the salary income is showing more (including the deductible allowances) than what the form16 that is issued by my employer which indicates less salary income, excluding the deductible allowances. I too have been given form16 from traces by my employer. Tax officials are having this form data and not data from form16 that has been given to me apart from traces form16. Tax officials are not having this form & I am not finding any way to upload it. There is the whole lot of confusion. I am right at my own place & they are right at their own unless they see the form16 that is with me issued by my employer. I am totally confused. I understand the situation but I am not finding the provisions to show it. I do not know what to do. Let us see if any one has some insight into this.

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2018 sir, please tell me one thing. shall i say "return filed as per deduction allowed in form 16" in the sl no 5, i.e., any other reason (if non of the points under 1-4 is applicable) and fill the difference in amount in amount column and leave aside all the points under 1-4 blank. but, just to mention, sl no 3 which says deductions u/s 10 under which one of the point, i.e., allowance & perquisite under 10(14), is completely applicable in my case. please tell me once, that should i fill sl no 3 and 5 both or only 3 or only 5 and submit.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 May 2018 Yes, say "return filed as per deduction allowed in form 16" in the sl no 5, i.e., any other reason (if non of the points under 1-4 is applicable). They will check form 16(available with them under TRACES) with return filed and process the return.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2018 I finally responded with Disagree & putting the differential amount in Sl. No. 5 of Response Form with remarks as "Return filed as per salary income (after exempt allowances) given in Form No. 16 issued by employer". Let's see how they take it.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 May 2018 ITR will be processed as filed.