16 January 2018
Is tax relief u/s 89 is deducted for the purpose of calculating interest u/s 234B & 234C. On bare reading of these section, it is clear that relief u/s 89 is not deductible However practically relief u/s 89 should be allowed as deduction for calculating interest u/s 234B & 234C. CPC processed an ITR for AY 17-18 without considering relief u/s 89 for the purpose of calculating interest under the said sections. details are as under: Gross tax liability before tax relief : 284773/-, tax relief u/s 89: 138867/-, TDS: 221434/- interest u/s 234B: 4431/- and u/s 234C: 3197/-. total interest is 7628/-. The return was filed before the due date. Is there any case law on which ground a rectification request be filed.
20 January 2018
Yes, and CPC had also allowed the same as relief u/s 89..but they did not consider the relief for the purpose of calculating interest...
CAclubindia
