Interest u/s.234 b & c

Contact the concerned Assessing Officer to get relief and the interest deleted. 

Apply for rectification u/s 154 online.

To attract exemption from advance tax one needs to be a resident senior citizen, expemption is not available to non resident senior citizen u/s 207 so in this case a non resident is required to pay advance tax thus non payment has attracted interest u/s 234 b & c. Kindly pay them within 30 days of demand notice or else you will be liable for interest u/s 220.

If he is a resident senior citizen then only if he doesnt have profit and gains from business and profession. But share of profit form partnership firm is always considered as profit and gains from business and profession. Whether chargeable as enunciated in sec 207 is before exemption is one which you have to get a legal opinion on and go for appeals. So pay the demand to avoid interest U/s 220 and get a legal opinion and go on appeals.

Payment of advance tax is applicable to all sources of income. So the only way out of this demand notice is sec 207. If legal opinion says so then u can file an appeal.

The assessee is resident senior citizen only.

to apply for rectification, I could not find the appropriate pre fixed options available in the web site.

@ V. N Rao:

You can select the 2nd option - Taxpayer is correcting data in rectification and then select 11th reason I.e variance in tax computation/interest computation even though total income remains the same.

Please find attached the file for your reference wrt Rectification u/s 154

@ Karthik:

Could you please elaborate as to why is advance tax provisions applicable?

According to me, advance tax provisions is not applicable because there is no income chargeable under head "Profits from Business". The income that is derived from such partnership business is only share of profits which are exempt u/s 10(2A),I.e it does not form part of computation of total income

And as per Sec 207,

"(1) Tax shall be payable in advance during any financial year, in accordance with the provisions of sections 208 to 219 (both inclusive), in respect of the total income of the assessee which would be chargeable to tax for the assessment year immediately following that financial year, such income being hereafter in this Chapter referred to as "current income".

(2) The provisions of sub-section (1) shall not apply to an individual resident in India, who—

(a) does not have any income chargeable under the head "Profits and gains of business or profession"; and

(b) is of the age of sixty years or more at any time during the previous year."

 

It does not state that any income received or receivable from business. But mentions that any income chargeable under the head Profits from Business

So accordingly I feel the advance tax provisions does not attract. And hence should approach for rectification u/s 154 

Thanks a lot.

At the end, 'select and upload the rectification file' appears. I could not make out on this. Will you pl.elucidate?

(V N Rao)

I am not sure of this but the term chargeable to tax has very different meaning than word chargeable under certain head. So an exempt income is not chargeable to tax but it is chargeable under the head profits and gains from business or profession. And further by virtue of sec 10 (2A) exempt in the hands of assessee. So these are very different terms. Though i am not aware of any caselaws or pronouncement as such, i would also love to get clarity on this matter.

Exemption cannot be equated with non applicablity. If i take that argument then all the exempt incomes are not coming under income tax itself. Because sec 10 is not a charging sec. As per sec 14 incomes are classified under 5 heads. So if income is exempt then income tax act itself is not applicable if i equate charging under certain head with chargable to tax. I think so that is not the intention of the act. So as per my argument chargeable under certain head is nothing but applicablity of that head and charging to tax is whether tax has to be paid or not. So as in a common statement i would sum up like this - share of profit from a firm is chargeable as business income but by virtue of sec 10 the same is exempt and not chargeable to tax.