Int u/s 234C

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2010 Hi

Return for FY08 _09 was filed for a salaried employee. There was a very small portion on other income for which self assessment tax was paid at the time of filing of return without paying int u/s 234C.

Should the return be revised or shud be left for assessment. Also, if revision shud be done then, what is the period for which interest shud be paid.

The amount is insignificant in comparision to total income tax paid.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 July 2010 No need to revise return. You will receive an intimation under section 143(1) with a demand for the said interest, and if the calculation is correct pay the demand raised by the department.

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CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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26 July 2010 If the self assessment tax paid was less than Rs. 5,000 interest u/s 234C is not applicable. However, if return was filed belated, then interest u/s 234A will be applicable, irrespective of the amount of self assessment tax.

As per what is stated above, if interest u/s 234C is applicable, considering the fact that the amount paid it very insignificant, it would be better to leave it for the assessment rather than filing a revised return. On assessment a demand notice u/s 156 will be issued & the assessee will be asked to pay the interest portion only.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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26 July 2010 Agree with suggestion of Warrier Sir. Wait for 143(1), no need to revise return.
Further Assessee is liable for payment of advance tax if his Tax liability exceeds Rs. 10,000/- and not Rs.5000/-

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CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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27 July 2010 Mr. Gupta, The above case relates to FY 2008-09 when the assessee was liable to pay advance tax if tax liability exceeded Rs. 5,000. The limit was increased to Rs. 10,000 wef 1st April 2009.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 July 2010 Pradeep ji Thanks for Correction.