Income tax department issues clarification on mistaken notices for Section 80P deductions. Read here

livemint.com:

After several income taxpayers received notices for wrongly claiming income tax deductions under Section 80 P, the Income Tax Department (ITD) clarified that they were sent to them by mistake. The ITD added that «an email communication regarding this will be sent to you shortly».

“Defective return errors coming in partnership firms. Section 80P mentioned is not applicable to firms. A futile exercise of responding to such system-generated queries has to be done.@IncomeTaxIndia," this query was raised by taxpayer, chartered accountant Nirav Choksi on X (formerly Twitter),

In response, the Income Tax Department tweeted, “Intimation u/s 143(1) of Income-tax Act, 1961 with the error description: “In Schedule 80P, deduction u/s 80P(2)(e) cannot be claimed on income other than rental income" has been inadvertently sent. An email communication regarding this will be sent to you shortly. The inconvenience caused is regretted."

One of the deductions available under the Income Tax Act is deductions with respect to the income or gains of cooperative societies, which is provided under Section 80P. The deduction under Section 80P is available to individuals, Hindu Undivided Families (HUFs), companies, and firms.

(1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee.

(2) The sums referred to in sub-section (1) shall be the following, namely :—

(a) In the case of a cooperative society engaged in—

(i) carrying on the business of banking or providing credit facilities to its