19 January 2024
This pertains to my IT return for AY 21-22. I had filed the ITR return within due date (i.e. before 31st Dec 2021). The Due Tax payment (self-assessment Tax) of about INR 2 Lacs was paid within 4 days of the filing of Tax. I also paid interest of around 7000/-, as was showing in the Income Tax system, though no interest should have been applicable
Please let know whether I can file:
1) Rectification to update my challan for payment of INR 2 Lacs: - I was told that last date of filing rectification was 31st Dec 2023, for AY21-22. Can you please confirm whether I can file rectification. In this case I am getting Tax due of around 35,000/-, as system is not capturing date of my challan payment of INR 2 Lacs and calculating interest for delay. Actually, no interest should be applicable.
2) Updated return under 139 (8A):-
In this case, I am getting marginal refund of around 6500/- (nearly same as the interest amount I had paid), but since refund is not allowed under 139 (8A), I have to manually make it zero, before system allows the filing.
Please confirm whether 1) or 2) is the right way to proceed.
10 July 2024
Based on your situation regarding the Income Tax Return (ITR) for AY 2021-22, here are the clarifications for your options:
### 1. Rectification u/s 154 of the Income Tax Act:
Rectification under Section 154 is applicable in cases where there is an error apparent on the face of the record. In your case:
- **Challan Update**: You mentioned that the system is not capturing the date of your challan payment of INR 2 Lakhs, which is resulting in the calculation of interest. If the challan date is correctly reflected in your records and it was paid within the due date for self-assessment tax, you can file a rectification under Section 154 to update the details of the challan.
- **Interest Calculation**: If the interest is being incorrectly levied due to the system not recognizing your timely payment, rectifying the challan details should correct this issue.
- **Procedure**: You can file a rectification request online through the Income Tax e-filing portal. Ensure you have the correct details of the challan (like BSR code, challan serial number, and payment date) when filling out the rectification request.
### 2. Revised Return u/s 139(5) of the Income Tax Act:
- **Purpose**: Revised return under Section 139(5) is used to correct any omission or wrong statement made in the original return filed. If the primary issue is related to incorrect tax computation or interest calculation due to a system error, and rectification doesn't resolve it satisfactorily, you may consider filing a revised return.
- **Limitations**: A revised return can typically be filed before the end of the relevant assessment year or before completion of assessment, whichever is earlier. Given that AY 2021-22 has passed, if rectification doesn't resolve your issue, you may explore filing a revised return under this provision.
### Decision: - **Priority**: Since rectification (under Section 154) is the first step to correct factual errors or discrepancies in your tax payment details, it should be your initial approach.
- **Process**: Ensure all details in your rectification request are accurate and supported by documentary evidence (such as payment challan details). This will help in expediting the rectification process.
- **Consultation**: If you're unsure about the process or specific details required, consulting with a tax professional or Chartered Accountant would be beneficial to ensure compliance and accuracy.
### Conclusion: Given the scenario described, rectification under Section 154 appears to be the appropriate first step to correct the issue of interest calculation and to update your tax payment details. If rectification doesn't resolve the issue satisfactorily, you may then consider exploring the option of filing a revised return under Section 139(5), though this is typically done when there are substantive errors in the original return filed.
Always ensure to verify all details and seek professional advice if needed to navigate the Income Tax filing process accurately.
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