Responding to Notice under section 148 of the Income-tax Act,1961

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Anil Verma (Querist)
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25 March 2023 Hi,

I purchased a property in year 2015 worth ~1Cr, with my wife being first owner and I being second owner of the property. We took a home loan from HDFC bank and they disbursed loan installments to the builder. Since my wife was first owner, TDS was deducted by her at 1%.

However, since my wife was not earning, she did not file income ta return for AY 2016-17. For this assessment year, there were total payments of approx 65 lakh to builder, on which TDS was deducted and deposited.

My wife has now received a notice under section 148 for reassessment of income. In this respect, I have following questions in consideration that we need to file for AY 2016-17:

1. There is no option to show property purchased in any ITR form, and she had no other income. Should we chose ITR1 or ITR2? Is there a place to indicate anywhere that she deducted TDS for property purchase?

2. We actually tried and prepared return XML using section 148 of income tax return preparation utlity. However when we try to upload it online, it shows only option to chose from u/s 92 CD and 119(2)(b). Section 148 is not an option.

3. We tried to choose section 139 in our ITR and it failed to upload again as now it asks for filing ITR after condonation of delay. However, online portal does not let us file condonation request as well, telling there was no return that was received after due date.

Please help how to approach this. We have never concealed any income and this return was not filed as there was no income.

Also, since TDS was deposited by my wife, is it recommand that my wife shows this amount as gift money received from me? I paid all EMI to bank.

Thank You in advance!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 March 2023 No need to show property purchased in ITR.
Yes, reply to the notice as gift amount paid to wife. Enclose your ITR filed disclosing source of income for the purchase of the house. Enclose also documents for availing bank loan.

What is the assessee required do after receiving notice under Section 148?

The assessee is required to produce the details of his/her income tax returns within the time specified in the notice by the assessing officer In the case that the assessee needs to provide income tax returns of any other assessable person, then he or she has to provide them in the format specifically mentioned as per provisions of the act with any other information deemed to be provided with the detailed information.