Lesser income tax refund claimed in revised return

ITR 507 views 3 replies

Chhavi Aggarwal

Taxation Officer

32 Points Joined June 2010

Suppose an assessee has filed his income tax return within the time limit which has income tax refund of Rs 5000/-. Later on, the assessee found that he missed an income in his original return. Hence he filed the revised income tax return and consequently now revised return has lesser income tax refund, say Rs. 1000/-.

Now, income tax department has refunded the amount as per original return.

Please confirm what should assessee do now:

1. He should pay the difference amount as self assessment tax

2. He should wait for instructions from Income tax department.

Replies (3)

CA Prateek Garg

CA in Practice

1447 Points Joined November 2009

Waiting is not a good option as you will have to pay tax with intt. In my opinion file a rectification request u/s 154. AO will pass an order a send a demand to you. Then you pay the demand.

Udgam Koomar

Tax Technologist

1949 Points Joined August 2011

yes when demand comes u can pay under 400.

Z

Tax Consultation (US and India)

2970 Points Joined September 2011

Originally posted by : Chhavi Aggarwal
	Now, income tax department has refunded the amount as per original return. Please confirm what should assessee do now: 1. He should pay the difference amount as self assessment tax 2. He should wait for instructions from Income tax department.

I wish to add that the excess might have to be refunded WITH INTEREST (simple @ 0.5% per month or part of the month). The interest u/s 234D is to be paid when refund paid exceeds the refundable amount as determined on regular assessment

If you do not pay it immediately then the interest payable by you would keep on increasing and hence you should pay it without waiting for any instructions from the department.

234D. (1) Subject to the other provisions of this Act, where any refund is granted to the assessee under sub-section (1) of section 143, and—

(a) no refund is due on regular assessment; or

(b) the amount refunded under sub-section (1) of section 143 exceeds the amount refundable on regular assessment,

the assessee shall be liable to pay simple interest at the rate of one-half per cent on the whole or the excess amount so refunded, for every month or part of a month comprised in the period from the date of grant of refund to the date of such regular assessment.