Intererst u/s 243 b

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Hi all,

I hav filied return U/s 44 AD (Presumptive Taxation), As per our income Tax Software using for filing the retun there is no Interest U/s 234 C But Now I am received Notice U/s 143 (1) Of Income Tax Act in that showing interest U/s 234 C.

1. My Question is that, Sec 234 C Appliacable to Presumptive Taxation ...............?

2.Now I am Liable to Pay Interest as per the Notice...........................?

Replies (2)

Ramya

Internal Audit

59 Points Joined November 2007

from AY2011-12, if an assessee opts for presumtive income, advance tax need not be paid. 234c is for either non-payment of advance tax or when advance tax instalments are short paid. So interest under 234c cannot be levied. But the notice relates to which year

CA Rohit

In Practice

71 Points Joined July 2010

Chapter XVII-C is not applicable to assessee if assessee had adopted presumptive basis of income u/s 44AD. The requirement to pay advance tax fall under chapter XVII-C, since the whole chapter is not applicable to assessee so there will be no requirement to pay advance tax as well as interest on advance tax.