From,
[Your Name]
[Your Address]
[City, State, PIN Code]
[Email ID]
[Contact Number]
Date: [DD/MM/YYYY]
To,
The Assessing Officer
[Income Tax Circle/Ward]
[Office Address]
Subject: Reply to Notice Under Section 156 – Request for Recalculation of Tax, Surcharge, and Interest
PAN No: [Your PAN]
Dear Sir/Madam,
I acknowledge the receipt of your Notice under Section 156 of the Income Tax Act, 1961, dated [DD/MM/YYYY], for the Assessment Year [Mention Year], served on my client [Client’s Name].
Upon reviewing the tax computation, I would like to bring the following discrepancies in tax, surcharge, and interest calculations to your attention:
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Incorrect Tax Rate Application:
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The tax on Long-Term Capital Gains (LTCG) has been computed at […]%, whereas, as per the second proviso to Section 112, it should have been calculated at […]%.
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Since the LTCG arises from the transfer of listed shares and securities, and no indexation benefit has been claimed, the applicable tax rate needs correction.
-
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Recalculation of Surcharge and Interest:
-
As the corrected tax liability will be lower, I request you to also recompute the surcharge and interest under Sections 234A, 234B, and 234C accordingly.
-
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Request for Rectification Under Section 154:
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The miscalculation is apparent from the records, and as per Section 154 of the Income Tax Act, I request you to rectify the Notice of Demand and issue a revised challan reflecting the correct tax liability.
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Enclosed, please find the original challan for your reference.
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Request to Not Treat as Assessee in Default:
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While awaiting the revised computation, I request that my client not be treated as an assessee in default under the current demand.
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I appreciate your prompt action in this matter. Please provide the rectified demand notice and revised challan at your earliest convenience.
For professional tax assistance, visit www.companymitra.com.
Thank you for your cooperation.
Yours faithfully,
[Your Name]
[Your Designation] (if applicable)