Hi Sir, I got the IT notice US 139(9). The scenario is... I have insurance having maturity amount to 2.62 lakh and for which TDS was deducted of 1%(2.5k approx). The amount invested was 2.47lakh and net profit is about 15k. I declared this 15k in other sources of income and filed the revised return. IT department replied with same error (Rule 37 B A, section 199. As per Rule 37BA of the Income Tax Rules, 1962, read with Section 199 of the Income Tax Act, 1961, credit of tax deducted at source shall be given for the assessment year for which such income is assessable. As seen from the return of income filed, credit for TDS has been claimed but the corresponding receipts/income has been omitted to be offered for taxation. The above omission is a defect, as per clause (a) of the Explanation provided under section 139(9).)
I challenged it, but still, they are telling the same issue. Shall I have declare full insurance matured amount under head sources of income. This I feel unfair to declare as I didn't gain anything and loosing money. Please advise
CAclubindia
