Q.Write a letter requesting to cancel demand notice as income is not taxable on behalf of Saraswati Book Store.
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Start your 14-day free trial to unlock the full solution →A letter from Saraswati Book Store to the Income Tax Officer requesting cancellation of the demand notice because the income is not taxable, with supporting details enclosed. Full specimen below.
Specimen Letter — Request to cancel demand notice (income not taxable)
From,
The Proprietor,
Saraswati Book Store,
Station Road,
Vadodara – 390 002.
PAN: ABCDS1234E
Date: 15th March, 2026
To,
The Income Tax Officer,
Ward – 2,
Income Tax Office,
Vadodara.
Subject: Request to cancel demand notice as income is not taxable.
Ref: Demand Notice No. ITO/VAD/2026/456 dated 5th March, 2026.
Respected Sir,
With reference to the above demand notice, I wish to submit that Saraswati Book Store has received a notice demanding payment of income tax for the Assessment Year 2025-26.
On examining our accounts, I respectfully submit that the total taxable income of the business for the said year is below the maximum amount not chargeable to tax (the basic exemption limit). Therefore, no income tax is payable by us, and the demand appears to have been raised by mistake.
In support of this, I enclose a copy of our Profit and Loss Account, Balance Sheet and the computation of income for the year, which clearly show that the income is not taxable.
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