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Query on Form-67 & sec 244c

Rajagopal Aravindan (5 Points)

13 November 2022

Hello CA Experts !

For AY2022_23,

I have foreign income that I declared in my ITR-3, but haven't filed Form-67 yet
I paid advance tax in Mar 22 and an amount slightly higher than that is due as refund to me
I filed my ITR-3 after due date with Rs5000 penalty
In the intimation u/s 156 recd from the IT dept
1. Interest under section 244c is zero
2. DTAA (u/s 90) claims have been ignored

Can someone please advise

how to compute & claim interest u/s 244c ?
how to claim DTAA (u/s 90) deductions ?

Thanks in advance !

Rajagopal

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (176815 Points)
Replied 15 November 2022

1. As per said sec. 244A..... No interest shall, however, be payable if the amount of refund is less than 10% of the tax determined on regular assessment.

2. For any claim of tax paid in foreign country, Form 67 should be filed before the due date of filing of return as specified u/s 139(1).

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Rajagopal Aravindan (5 Points)
Replied 18 November 2022

Thank you Sir, for providing clarification.

In my case, the amount of refund is greater than 10% of the tax determined.

What is the rate of interest u/s 244 and how are the start & end dates calculated ?

How to respond to the demand notice, that if interest u/s 244 is take into account there will be no due from my side but dept has to provide refund ?

Regards,

Rajagopal

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (176815 Points)
Replied 18 November 2022

The BIG question is dis-allowance u/s. 90 of the act, thereby there doesn't seem to be any refund; but tax due. Hence interest over REFUND (which is NIL) is ZERO.

Rajagopal Aravindan (5 Points)
Replied 19 November 2022

Hello Sir,

Even if foreign income is added to my taxable income, advance tax paid by me is ~30% more than the tax due to be paid by me.

Please let me know if you were referring to something else as "disallowance u/s 90".

After filing the ITR, I recieved

1.Intimation u/s143, where DTAA is ignored but 30% excess is refunded to my bank a/c with small amount as interest u/s 244

2.A week later, initmatin u/s 156, whereagain DTAA is ignored & also interest u/s 244, thereby asking me to payback the "amount received as interest u/s 244 in previous 143 intimation"

Before I "disagree with the demand", I would like to understand how interest u/s 244 is computed normally.

What is the rate of interest and interest start & end dates ?

The demand due is Rs3K but I would like to know how much interest u/s 244 I am eligible for, before agreeing or disagreeing with the demand.

Thanks & Regards,

Rajagopal