Answer

1. F

   Facts

   CPC's system matches amounts head by head, so income reported under a different head can look missing. If you already offered the income to tax, there is no escaped income. You should disagree and point to where it is reported.

2. P

   Provisions and law

   • Sec 143(1)(a) (now Sec 270(2))CPC can adjust the return for listed reasons, but must first tell you and consider a reply given within 30 days
   • Sec 22 (now Sec 20)Annual value of property you own is taxed under house property
3. A

   Analysis

   Sec 143(1)(a) adjustments are mechanical comparisons, and a mismatch of heads is one of the most common false alarms. Choose Disagree and state the schedule and amount, for example 'rent of ₹2,40,000 from the shop included in business receipts in the P&L'. Also consider whether the head was right in law: rent from letting a property is usually house property income under Sec 22 (now Sec 20), and a wrong head can change the tax. If the head was wrong but tax is the same or higher, explain that too and fix it in future returns.

4. C

   Conclusion

   1. 1Find the schedule and line where you reported the income.
   2. 2Choose Disagree and quote the schedule name and amount.
   3. 3Check with your CA whether the head itself was correct.
   4. 4Keep the bank statement showing the receipts.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.