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Im confused !!!

Ruchika Gupta (Chartered Accountant) (247 Points)

05 March 2008

Im confused with sections 140A and sec 143(1). If an assessee files a return u/s 139 and any tax and interest is found due even after deducting advance tax, TDS, TCS and MAT credit then whether he will treated ASSESSEE IN DEFAULT from the very next day of filing return (as given u/s 140A) or after 30 days of service of intimation u/s 143(1) (as given u/s 143(1)) on him???

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6 Replies

CA Himanshu Awasthi (Manager (Advances)) (520 Points)
Replied 06 March 2008

Dear Ruchika ji, Assessee will b treated as Assessee in default frm the day of filing ROI.

Ruchika Gupta (Chartered Accountant) (247 Points)
Replied 06 March 2008

But it is given u/s 143(1) that if after filing ROI any tax and interest is found due then an intimation shall be given to assessee stating there in the sum due and this intimation is deemed to be a demand notice u/s 156. As per sec 220 when a demand notice is served on assessee and if does not pay the demand with in 30 days then he will be treated as ASSESSEE IN DEFAULT! So don't u think that there is contradiction???

(Guest)

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(Guest)

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Ashish M (Chartered Accountant) (2731 Points)
Replied 17 February 2009

Before filing of return within the due date u/s 139(1), the assessee is required to pay self assessment tax u/s140A......When the return is processed under section 143(1), any tax becoming due from the assessee shall be sent an intimation under that section and such intimation shall be deemed to be notice of demand u/s156........if the assessee doesn't comply by the demand notice within 30 days, the assessee shall be deemed to be in default from the date immediately after 30th day..

As Sec.220(2) provides......

"the assessee shall be liable to pay simple interest at [one] per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) [ i.e. 30 days.] and ending with the day on which the amount is paid :"

CA. Ashok shah (CHARTERED ACCOUNTANT) (333 Points)
Replied 17 February 2009

Self-Assessment u/s.140A, i.e. before submitting ROI, assessee is supposed to find out whether ant tax or interest or both are payable. If it is payable on the basis of ROI to be furnished, asseessee is supposed to pay the same before filing the ROI. If any assessee fails to pay whole or any part of tax or interest or both before filing of ROI in accordance with the provisions of Sec.140A, he shall be deemed to be assessee in default on filing of ROI without SA Tax Payment.