I got a demand notice earlier from IT dept based upon the ITR filed and I provided a response back that i dont agree with the demand notice but they have rejected my response,
what should be the next steps in this case?
Context - They rejected my HRA exemption claim and asked the extra tax because of that and I think this has happened because I have not shown my salary breakup during filing like how much is the basic component and how much HRA allowance i am getting.
Hi @nyk, you will have to file the rectified return and provide the break-up of the salary into different components in the rectified return. Let us know if you need any further help, would love to assist you with it.
BTW, checkout this recent video by the Income Tax Dept. that talks about
how to respond to a demand notice
provide clarifications/evidence
and file rectified returns.
Apparently, the Income Tax Dept.'s current target is to resolve 98% of such differences through the online portal itself, without the need for any offline procedures / visits to the Income Tax offices.