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Advance tax liability on arrears of salary received

CA Sunil Kumar CS (Chartered Accountant) (57 Points)

30 March 2018

One of my friend received a demand notice for interest payment u/s 234B and C. He is a salary class assessee and have filed the return properly. He has 19 lacks as arrear received in march and tax has been deduced and paid by his employer in march. He has paid all taxes under TDS and tax liability is nil. Any one can help me in this issue why this interest liability came. Thanks in advance

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Sarath Rajendran (Nil) (2791 Points)
Replied 20 December 2018

At the time when our liability to pay tax above 10,000 for the previous year we must pay advance tax and claim refund by filing 10 E ( it helps you to avoid inerest liability under 234 B and C)

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Sarath Rajendran (Nil) (2791 Points)
Replied 20 December 2018

Explanation 1.—In this section, "assessed tax" 64 means the tax on the total income determined under sub-section (1) of section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of,—

(i) any tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income;

(ii) any relief of tax allowed under section 90 on account of tax paid in a country outside India;

(iii) any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section;

(iv) any deduction, from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and

(v) any tax credit allowed to be set off in accordance with the provisions of section 115JAA 65[or section 115JD].]

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