Nidhi (Chartered Accountant) (59 Points)
03 January 2011Q1.Assessee has entered into a Lease agreement with a bank for 9 Years and received Advance Rent of Rs.1200000/- for last 6 months of the Lease period. Whether TDS should be deducted?
Q.2 An assessee was having a total Income from Salary Rs25000/- for AY 2008-09 and had not filed any return but due to Assessment Order U/s147 Return is filed now. ITO has charged Interest U/s234A. Is he liable for Interest?
Pankaj Arora
(Learner)
(3134 Points)
Replied 03 January 2011
Dear Nidhi
Yes for the first query tds have to deducted on Rs.1200000 for last 6 months under section 194 I
And for second query yes he is liable for interest and I think he also liable for penalty of rs.5000 because belated return time has over for the a.y. 08-09.
Nidhi
(Chartered Accountant)
(59 Points)
Replied 03 January 2011
Thanks Pankaj but in the second query Assessee's income was below taxable and he had not filed any return earlier.I am confused When he was not liable to file the return then How can interest be charged U/s 234A?
Pankaj Arora
(Learner)
(3134 Points)
Replied 03 January 2011
Salary of assess is Rs.25000/- pm. And anualy income will be rs.300000/- please see slab rate of a.y.08-09 and calculate tax on rs.300000 after if any deduction u/s 80c or 24b.
I m sure he must have tax liability that’s why ito sent him assessment order u/s147.
Mayank Kothari
(CA)
(919 Points)
Replied 03 January 2011
Interest is not chargeable but assessee is liable for Rs 5000 penalty
Pankaj Arora
(Learner)
(3134 Points)
Replied 03 January 2011
if its annually salary than interest is not liable only penalty of rs.5000/- u/s271f is liable.
write a letter to a.o. for correction in computation of interest.
Hii Nidhi, For ur first query, tax needs to be deducted u/s 194 I (Accrual or Receipt whichever is earlier).
For the second one, neither Interest u/s 234A nor Penalty can be levied on the Assessee. As gross total income for the A.Y. 2008-2009 (Rs.25000) is below the taxable limit, assessee is not required to file the I.T return.
Pankaj Arora
(Learner)
(3134 Points)
Replied 03 January 2011
But if assess income in not chargeable to tax I think he must have income from other sources and that income somebody deducted tds on those income that’s why ito sent him assessment order u/s147.
Jitender
(Head of Audit & Taxation Deptt)
(38 Points)
Replied 03 January 2011
Interest shall be applicable
As per section 147.. Assessment order u/s 147 is passed for the Income Escaping Assessment... and if assessment is made under section 147 it shall be treated as normal assessment under sec 139 and all the provision which is required to comply with section 139 will also apply here
so interest shall chargable u/s 234's
Jitender
(Head of Audit & Taxation Deptt)
(38 Points)
Replied 03 January 2011
dear why are taking regard only of 25000/ of income from Salary in current year...?
Assessment order u/s 147 is passed for income escaping assesssment either in current assessment year or in last 6 Assesssment years
but the assessment u/s 147 is treated as regular assessment so all provisions which applies to section 139 shall also apply here
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