How to take Maximum Benefits from Different sections of Income Tax Act

How to take maximum benefits from Income Tax

Now that March is coming closer a proper Tax planning is essential for you to take maximum benefits from Income Tax rebates available under different sections of Income Tax Act .

Here are some of the sections under which you can claim Tax rebates .

Section 80C : Maximum Rebate Rs 150000 by investing in PF, PPF , ELSS , NPS Etc.

SECTION 80D : Maximum Rebate Rs 25000 for medical cover of self and family

Section 80CCD : Max Rebate Rs 50000 exclusively for NPS

Section 80D : Maximum rabate full amount of actual interest paid on education loan of children , spouse, close relatives.

Section 24 : Max rebate Rs 2 lakh on home loan interest .

Please note that most of these sections are not only for your current year tax saving but also for your future comfortable retirement life too, be it PF, Insurance , Home loan or Pension scheme . So invest in these schemes as much as possible to reap the benefits today and tomorrow .

Trick : Here is a trick for you , if you estimate that you are on border line of 30% Tax bracket , donate money to charitable institutions and claim Tax rebate under section 80G that may bring back you to 20% tax bracket and you may get enough publicity on FB too. Happy Tax Saving.....

How to deal with Income Tax Notice

Now that filling of Income Tax return is over , and processing of your  Tax return has started  , all will get an intimation notice from the Income Tax Dept  regarding processing of your Tax return .
An intimation under section 143(1) is issued by the CPC under any of the three instances:
There is tax liability to be paid;
A refund has been determined;
There is no refund or demand,

If as per the intimation u/s 143(1) there is a tax demand then this intimation becomes notice of demand and this intimation will be treated as Notice of demand u/s 156. Accordingly, you will have to pay the entire amount within the time mentioned in the notice."

The intimation will be sent to you regarding the same via email and SMS under section 143(1). You will find the tax demand notice on your online account on the e-filing website  https://incometaxindiaefiling.gov.in/. According to the current income tax laws, the time limit to respond to this is 30 days. If you do not respond to the notice within the stipulated time period, the department can take action against you.

If the person to whom the section 156 tax notice for demand has been issued fails to pay the amount demanded within the time limit, then the assessee is liable for the following penalties:

Interest u/s 220- Interest at the rate of 1 percent each month or part thereof is payable after the expiry of the 30 days time provided under section 156 tax notice.

Penalty u/s 221- A penalty u/s 221 may be imposed by the assessing officer on the assessee

You can respond to the tax notices by logging in to your account on the e-filing website  https://incometaxindiaefiling.gov.in/
Here is the Procedure:
1. Login to your account on the e-filing website by entering your credentials: User ID (PAN), password, and captcha code.


2. Click on the 'e-file' tab and select 'Response to outstanding Tax Demand' option.


3. An outstanding tax demand notice will appear on your screen with details such as assessment year (AY), section code (under which the notice has been served), demand identification number etc.


4. Click on 'Submit' in the response column for the appropriate AY to submit your response. The assessee has to select one of these options:
A) Demand is correct
B) Demand is partially correct
C) Disagree with demand
D) Demand is not correct but agree for adjustment

Enter the necessary details and click on 'submit'.

Once the information is successfully sent to the department, then a transaction ID will be generated.

You can check your response by clicking 'View' in the response column. You can click on the 'transaction ID' to check the response sent by you to the department.

Once you have submitted your response, please keep checking “ My Account “  by logging into Income ax site every week or so  to know the department's response,


If you need further  help in this matter please contact us www.etaashfinserve.com   or whatsapp 9470307730.