[itwasntme]

Originally Posted by redcruiser

I have received this as taken up for processing and on verification it was found that it contains arithmetical errors/ incorrect claims/ inconsistencies with respect to Audit Report /Form 26AS and the same is indicated in the table annexed.

The amount is 2400 (professional tax 200*12) which I had deducted and filled in salary sheet.
What should be my next course of action ?
1. Should I reply them?
2. Or should I refile the return? If yes in which section should I include this professional tax in ITR-2?

I've also received the exact discrepancy notice for INR 2400 and suspect it is the Prof Tax. Interested to know the way forward.

[redcruiser]

Originally Posted by itwasntme

I've also received the exact discrepancy notice for INR 2400 and suspect it is the Prof Tax. Interested to know the way forward.

Yes probably you had not specified 2400 in row 7 of ITR-2. In this case we have to re file.

[rajathv8]

Originally Posted by itwasntme

I've also received the exact discrepancy notice for INR 2400 and suspect it is the Prof Tax. Interested to know the way forward.

Hey I too received such a notice. Worth mentioning that I used ClearTax to file my return and it looks like the application missed the 2400.
What an unlikely place to find the solution.

[hothatchaway]

I also used cleartax and since its been almost a year, I had to dig through my emails to piece together the sequence of events - their online form had no provision for me to enter section 10 deductions like HRA, LTA, leave encashment and Prof tax payment of Rs 2400. I had written to them multiple times as I was filling in the details but got only standard automated responses and finally filled the form incorporating the exemptions.

I checked the option of filing a response to the notice on the incometaxfiling site and could not find the right dropdown for conveyance exemption and professional tax so that I can record the deduction amount. Any pointers?

[SilentEngine]

I too received similar notice as others above, saying my ITR "contains arithmetical errors/ incorrect claims/ inconsistencies with respect to Audit Report /Form 26AS"

Income as per Form 26AS which has not been included in computing the total income in the return-143(1)(a)(vi)
Error Description:
There is inconsistency between salary income in return and Form 26AS

Originally Posted by binand

I also received this. The discrepancy in my case is that I filled "income chargeable under the head salaries" in my form 16 under "salary". I should have filled the gross salary and shown all exemptions too. Need to refile I guess.

I did the same. In fact i have been doing this earlier years based on what i remember. We cannot just use Gross Salary number as is because in ITR form it asks us to fill excluding section 10 exemptions and mention it separately item 7: "Allowances exempt under section 10 (Not to be included in 6 above)"

Originally Posted by redcruiser

I have received this as taken up for processing and on verification it was found that it contains arithmetical errors/ incorrect claims/ inconsistencies with respect to Audit Report /Form 26AS and the same is indicated in the table annexed.

The amount is 2400 (professional tax 200*12) which I had deducted and filled in salary sheet.

Originally Posted by redcruiser

Yes probably you had not specified 2400 in row 7 of ITR-2. In this case we have to re file.

Originally Posted by hothatchaway

I also used cleartax and since its been almost a year, I had to dig through my emails to piece together the sequence of events - their online form had no provision for me to enter section 10 deductions like HRA, LTA, leave encashment and Prof tax payment of Rs 2400. I had written to them multiple times as I was filling in the details but got only standard automated responses and finally filled the form incorporating the exemptions.

I checked the option of filing a response to the notice on the incometaxfiling site and could not find the right dropdown for conveyance exemption and professional tax so that I can record the deduction amount. Any pointers?

I am in same boat as you. I used cleartax last year (and also year before that).

My difference is because of conveyance and employment tax (is this same as professional tax?).

From what i understand,
I need to fill the (gross salary - section 10 deductions) in item 1.
Fill section 16 deductions (employment tax) in item 5.
Item 6 will be auto computed as 1+2+3+4-5 (i am skipping 2,3,4 because they are not relevant for me)
Fill item 7.iv with Section 10 exemptions (conveyance allowance in my case).

I guess, with this the numbers in 1 and 7 should add up to the amount mentioned in Form 26AS.

[hothatchaway]

^^^ Yes employment tax is same as professional tax.

The way I understood the response process to the notification on the incometax site is that one is to file revised returns only if one has committed an error, either fully or upto a partial amount. In my case for e.g. the exemptions are valid, it is just that the intermediary, cleartax in this case, did not have provisions for section 10 items to be entered, not to mention that the IT folks took almost a year to come back by which time one may not remember the specifics. IMO, I can just fill in the amounts in the page the rectification hyperlink takes me to.

Any thoughts

[A.R]

I received this notification on arithmetical errors etc too. I used Cleartax for the original return and filed a revised return yesterday. I still can't find the options to manually enter the values foe different files like gross salary, perquisites, exemptions like conveyance, employment tax etc. It only asks for Income chargeable under head salaries (item 6 from form 16) which is what I entered that last time too. Kind of lost!

[binand]

So this arithmetical error: I checked my previous returns too. I have always done the same thing that I did last July. Right now I am not in a position to do a detailed analysis, but one thing I remember is that in the last year, I had a negative entry in the salary side ("Value of Perquisities") when I purchased my company-issued laptop at its carrying value. I seem to remember the Cleartax system I used did not have the provision to enter negative perk value.

Is Cleartax the common factor here?

[PGA]

Originally Posted by binand

Need to refile I guess.

Originally Posted by NPV

Please check if the Gross salary reported in your Form 16 and Form 26AS are the same. Though rare, there could be a discrepancy between them.

Originally Posted by Rocky_Balboa

I had the same notice and it was to do with the interest I received from my various bank accounts which ran in 5 digits.

Originally Posted by Gokrish

Do you receive any Pension from your previous employer? Or did you declare any other income in the ITR?

Thanks a lot for the inputs, I guess everything mentioned above in some way is pertinent in my case. So will get on working this weekend for some serious accounting stuff,:

[NPV]

Originally Posted by redcruiser

What should be my next course of action ?
1. Should I reply them?
2. Or should I refile the return? If yes in which section should I include this professional tax in ITR-2?

The email you received will also have the steps on how to check this on the IT portal after logging in and how to respond. Once you respond, the IT folks will review and let you know the next course of action.

[SilentEngine]

Originally Posted by hothatchaway

^^^ Yes employment tax is same as professional tax.

The way I understood the response process to the notification on the incometax site is that one is to file revised returns only if one has committed an error, either fully or upto a partial amount. In my case for e.g. the exemptions are valid, it is just that the intermediary, cleartax in this case, did not have provisions for section 10 items to be entered, not to mention that the IT folks took almost a year to come back by which time one may not remember the specifics. IMO, I can just fill in the amounts in the page the rectification hyperlink takes me to.

Any thoughts

Thanks for this suggestion. I hadn't seen this page earlier, and after seeing it i think it makes sense to use it fill the exemptions there instead of filing another return. I submitted my response using this option just now and let me see what happens next. Worst case they may ask me to file another return, though i see no reason for it since overall tax outgo remains same, and all differences have been explained in the form.

[SilentEngine]

This link explains the steps to be followed for salary income mismatch notices.

http://bclindia.in/received-1431-notice-means/

[binand]

Originally Posted by binand

Is Cleartax the common factor here?

Today I found the time to investigate what this Cleartax goofup is all about. Here is what I figured.

This is the typical Form 16, part B.



This is Cleartax's field to enter salary information.



So what I did was, I entered item 6 from the Form 16 into the Cleartax system and filed my return (which is in line with their instruction too). That was the mistake.

The right thing to do is to click on the "Click here if you want to enter your salary information in detail". This will open up this form:



In this form we have to fill all the boxes from form 16 part B.

Box 1: 1(a) in form 16 part B.
Box 2: 1(b) in form 16 part B.
Box 3: 1(c) in form 16 part B.
Box 4: The amount in the Total line under no. 2 (Allowance to the extent exempt u/s 10) in form 16 part B.
Box 5: automatically calculated
Box 6: Item 5 in form 16 part B.

Now it seems the problem will be solved. I actually haven't been able to file the revised return because their system crashes on me when I try to. I have opened a support ticket; hopefully they will respond by Monday.

[hothatchaway]

Originally Posted by binand

Box 1: 1(a) in form 16 part B.
Box 2: 1(b) in form 16 part B.
Box 3: 1(c) in form 16 part B.
Box 4: The amount in the Total line under no. 2 (Allowance to the extent exempt u/s 10) in form 16 part B.
Box 5: automatically calculated
Box 6: Item 5 in form 16 part B.

Now it seems the problem will be solved. I actually haven't been able to file the revised return because their system crashes on me when I try to. I have opened a support ticket; hopefully they will respond by Monday.

Can you not submit a response on the incometaxfiling website against Adjustments u/s 143(1) under e-proceedings? You can choose the 'disagree' option and reconcile the discrepancy in amount.


I dont think cleartax had this option of letting the filer enter the exemption details; I recollect that last year while entering the details, I was at my wits end to figure out how to account for these exemptions and even though I wrote to cleartax more than once, I did not get a reply.

[binand]

Originally Posted by hothatchaway

Can you not submit a response on the incometaxfiling website against Adjustments u/s 143(1) under e-proceedings?

I chose not to do this, because "I made a mistake" wasn't one of the options.

Originally Posted by hothatchaway

I was at my wits end to figure out how to account for these exemptions and even though I wrote to cleartax more than once, I did not get a reply.

If I could take out my entire filing from Cleartax and import it into the Java utility, I'd be happy. Any way of doing that?

Anyway, this is the end of my relationship with Cleartax. They have not responded to my queries yet. I chose to go through them because last year I had to file ITR-3 which was too complex for me to do on my own.