Your Queries (Income Tax): Understand reason for income tax notice before filing rectified return

November 10, 2021 12:45 AM

All taxpayers are required to pay advance tax quarterly at prescribed rates and before the prescribed due dates.

Prepayment of home loan does not entail any specific benefits whereas benefit on repayment of home loan is provided.Prepayment of home loan does not entail any specific benefits whereas benefit on repayment of home loan is provided.

By Chirag Nangia

I got a notice for defective returns, which I rectified and filed again. I have again received such a notice. What should I do?
—Jayant Kaushik
Need to first understand the reason why such notices for defective return are being issued. Any curative action or refiling of return may be advised only after understanding such reason. If such defect cannot be rectified for any reason beyond control of assessee, then a necessary application may be required to be made to concerned tax authorities explaining the difficulty and request them to consider the return as ‘valid return’. Help of a professional chartered accountant or tax practitioner may be taken in such matters.

How do I pay advance tax for the interest that I earn from my bank deposits?
—V K Karthik
All taxpayers are required to pay advance tax quarterly at prescribed rates and before the prescribed due dates. However, please note that advance tax is not required to be paid by a resident individual if he is aged 60 years or more at any time during the previous year and who does not have any business income. The due dates for payment of advance tax are 15th June (15% of advance tax payable), 15th September (45% of advance tax payable), 15th December (75% of advance tax payable) and 15th March (100% of advance tax payable) of the relevant previous year.

Is there any tax benefit for prepaying a home loan?
—Harshad Patil
Prepayment of home loan does not entail any specific benefits whereas benefit on repayment of home loan is provided. However, these benefits differ based on timing of repayment of loan, i.e., paid before or after the property is acquired. If repayment is made after acquisition/ construction, total amount of principal paid in a financial year can be claimed as a deduction from gross total income under Section 80C before calculating net taxable income. Interest payment can be claimed as deduction under Section 24, up to Rs 2 lakh for self-occupied property provided construction gets completed within five years from end of financial year when property was purchased/ constructed.

The writer is director, Nangia Andersen India. Send your queries to fepersonalfinance@expressindia.com

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