Many taxpayers expressed dissatisfaction over receiving notices for claiming deductions that are exclusive to cooperative groups. However, they must reply within 15 days to avoid having their refunds altered or having to pay more taxes.
Numerous taxpayers have contacted tax mediators and experts once more even though the final day to e-verify income tax returns was August 31. This time, it is to reply to notices that they are claiming deductions for which they are not even qualified.
Under Section 143 (1), notifications were sent to thousands of taxpayers in Gujarat and Maharashtra asking them to explain why they had claimed deductions under Section 80 P. Deductions are sums that you claim to lower your income through purchases or costs.
Individuals are not eligible for this deduction; instead, only cooperative societies are. In accordance with Section 80 P, cooperative societies are eligible for deductions of Rs 15,000–20,000 when determining their total income if they get money from a banking or credit facility, agricultural activity and products, or a cottage industry.
“Incorrect notices are being sent for Section 80 P deductions regarding proposed adjustments under Section 143(1)(a).” However, because our clients are ineligible to claim these deductions, we haven’t done so for them. These are sent for individual income tax returns rather than cooperative society returns, according to chartered accountant Raju Shah of Ahmedabad.
