Friday, 28 July 2017

Mismatch in Income with Form 16/16A? How to Handle. (Clear Tax)


There may be cases when in income tax return income shown by you does not match with income declared in form 16/16A, in such cases, you may get notice from Income Tax Department. But, if you have valid reasons for difference and can explain with documents, nothing to worry.
Everything under Taxes is being automated now a days, there are many benefits of automation, fast processing, accurate results but a big disadvantage is that It lacks common sense. It works according to codes set in programs. e.g. in Form 16, Part A, Income can be Net Income on that TDS is deducted e.g. if Someone's TDS deducted upto Feb'17, no tds will be deducted in March'17, But detail in Part B will capture total Salary for the FY. So, even in form 16, there would be mismatch in part A and part B. There is valid reason, but Computer ko kaun Samjhaye ki India mai aisa bhi hota hai ? It will happen in future, But as of Now, have to go with current system.
Other differences may be as no proof of investment could be submitted in company on time, but now showing the same in ITR.
Here is link of useful article published by Clear Tax attached suggesting what strategy to use or steps to be taken if notice is issued by Income Tax Office for Mismatch in Income with form 16/16A. Thanks.

No comments:

Post a Comment