I have filed ITR2 with long-term capital gains for debt-oriented mutual funds which were acquired before April 1st, 2023 (so they are still eligible for indexation benefit). As a result of calculating indexation, the LTCG amount is lesser than the gross receipt indicated in 26AS - which was computed by MF / CAMS without indexation.
Somehow, this is triggering the below validation error and consequently the ITR was found defective: "The gross receipts shown in Form 26AS, on which credit for TDS has been claimed, are higher than the total of the receipts shown under all heads of income, in the return of income. Thus, while credit for TDS is being claimed, the corresponding receipts are not offered in the respective income schedules, to arrive at the taxable total income. Hence, the return of income filed is regarded as defective, as provided in Explanation (a) under section 139(9)." Notice has error code SEC139_F26AS_2021_002.
It does not seem to be correct logic. I am planning to respond as "disagree" to the notice and provide explanation. Any other option?
CAclubindia
