Income Tax Notice: Know what is Section 80P under which the Income Tax Department had to give clarification on the notice sent by mistake.
Income Tax Notice: In the last few days, many income taxpayers have received notices for wrongly claiming income tax deduction under section 80P. However, at present the Income Tax Department has made it clear that this notice had reached the taxpayers by mistake. Along with this, it was also said by the department that all taxpayers will soon be informed about this through email.
What is the matter?
After receiving such notice, a question was raised on X (Twitter) by Chartered Accountant Nirav Choksi. He said that mistakes related to defective returns are coming to light in partnership firms, the section 80P mentioned in it does not apply to firms. Therefore, the Income Tax Department should answer these questions as soon as possible.
Income tax department gave clarification
In response to this, the Income Tax Department issued a notice under Section 143(1) of the Income Tax Act, 1961 through a post on X stating that in section 80P, other than rental income, section 80P(2)( e) deduction cannot be claimed under The notice has been sent inadvertently. We are sorry for the inconvenience caused to you.
What is Section 80P?
Under ‘C – Deductions in respect of certain incomes’ of Chapter 4 of the Income Tax Act, 1961, taxpayers get deduction in different income categories. There is one section in it – 80P. Under this, deduction can be claimed on income or profits earned from co-operative societies.
Deduction under section 80P is available to individuals, HUF, companies and firms. Deduction can be claimed on the actual profit made by the assessee from some specific activities of any co-operative society. The profit is kept within the scope of deduction only when it is included in the gross total income of that co-operative society be included in.
