21 September 2017
I ASK FOLLOWING QUERY ON INCOME TAX -E NIVARAN FORM .
"AS PER INTIMATION U/S 143(1)BY REFERENCE NO.CPC/1718/A1/1710327803 INTEREST U/S 234B AND 234C HAS BEEN CHARGED. SINCE TOTAL TAX LIABILITY AS PER MY RETURN AND AS COMPUTED U/S 143(1) BOTH IS SAME i.e. RS. 201831.00 AND TDS IS Rs. 221332.00.SO INTEREST U/S 234B CAN NOT BE CHARGED AS MY TDS AMOUNT IS MORE THAN MY TAX LIABILITY AMOUNT. INTT. U/S 234B IS CALCULATED on 1 PERCENT ON ASSESSED TAX LESS ADVANCE TAX. SINCE MY ASSESSED TAX IS NIL SO INTEREST U/S 234B CAN NOT BE CHARGED. SIMILARLY INTEREST U/S 234C CAN ALSO BE NOT CHARGED. REFUND AS PER MY RETURN IS RS. 19,500.00.AND AS PER INTIMATION U/S 143(1) IS RS. 16,793.00.SO PLEASE REFUND THE DIFFERENCE AMOUNT RS. 2,708.00 (19,500-16,793) WHICH IS CHARGED U/S 234B AND 234C. U/S 234B RS. 1,196.00 AND U/S 234C RS. 1,512.00 HAS BEEN CHARGED.
IN REPLY THEY SAY THAT INTT. IS PROPERLY CALCULATED U/S 234 B AND C. Please guide me whether inn u/s 234B AND C CAN BE CHARGED WHEN THERE IS REFUND DUE. AND HOE TO CLAIM REFUND THAT IS DEDUCTED IN LINE
21 September 2017
Interest u/s. 234b and 234c are charged for many Assesses whose 100% income is from salary. TDS being deducted regularly by Employer and remitted to tax authorities every month. Where is the question of interest u/s. 234 b and c. As pointed out by you in many of the cases TDS deducted was more than tax liability. God alone knows how the IT Authorities are computing the interest!!!
CAclubindia
