Sir,
My collegue, who just retired in 2016 had filed a Return ITR-1 for AY 2017-18. IT had issued a notice last week asking him to explain why he had not shown other income in the return as per 26AS. On scrutiny of the IT Return submitted by him from the IT webpage, it seems that the Tax Assistant had combined salary+FD interest together and shown it as Wages/salary income. He had also combined the 80C savings and Mediclaim. Now, we have to reply to the notice issued. The following may kindly be explained....
- Whether we can file a revised ITR-1 pursuant to receipt of this Notice?
- My friend has a house at Visakhapatnam which he rented out @ Rs.6000/- per month. This he was showing since 4-5 years. Now he stays in a house which is registered under his Son+Wife name. His son is employed in Delhi and he stays in a rented house.
- Can my friend show the rent received from that house at Rs.6000 pm and at the same time show rental value of the house, which he is staying, which house is registered in his son's name.(Rent of Rs.7000pm 3-BHK at Bhilai, can be shown as paid to son)
- In this case, the son also can show this rent as his income and at the same time, show having paid rent in Delhi.
1 Answers
Dear Mr Varma,
May I know what do you mean by 'combined the 80C savings and Mediclaim' ?
1 - Yes, can revise/rectify the ITR.
2 & 3 - The rented can be shown under the calculation 'income from house property'.
Regarding rent payable by him to his son, section 80gg has to be reviewd;
The extent of tax deduction will be limited to the least amount of the following;
- Rent paid minus 10 percent the adjusted total income.
- Rs 5,000 per month.
- 25 % of the total income.
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