Penal interest below rs 1000 is ignored or not

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Meera P S (Querist)
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30 May 2015 dear experts,
for the filing of an individual return
net profit is calculated as Rs 294500

net profit 264500
(-) BEL 200000
64500
tax@10% 6450
(_) rebate u/s 87A 2000
4450
Cess @3% 133.5
Net tax liability 4583.5
rounded off 4580
interest u/s 234A 458
(4580*1%*10)
the question is whether this 458 penal interest is payable or ignored?????

CA P RAVICHANDRA

CA P RAVICHANDRA (Expert)
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30 May 2015 any demand whichis below 100 or equals to 100 is ignorable

Sec 234A is not ignorable

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 May 2015 It is Rs. 10/- and not 100/- per section 288B of the IT Act,1961.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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31 May 2015 Warrier sir, the Rs 100 Ravichandra is referring to comes not from 288B but from an income-tax department decision to ignore demands less than Rs 100 while issuing notice of demand...

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