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Int u/s 234 b & c in itr 4

CA Mitesh N Kothari (9821662799) (391 Points)

29 July 2014

Hi Friends,

I am filing up ITR 4 and showing income u/s 44AD for Business. while calculating tax ITR is showing me Interest u/s 234 B & C, which is not correct as Advance tax provision are not applicable for Income u/s 44AD.

How to Solve it?

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16 Replies

Z ( ) (2960 Points)
Replied 29 July 2014

Is the income only from 44AD business?

It might be showing this because you are filing ITR 4 and not 4S.If you are filing ITR 4 then you must be having some other income and this interest could in respect of those other income.

CA Mitesh N Kothari (9821662799) (391 Points)
Replied 29 July 2014

I Am filing ITR 4 because exempt is more than Rs 5,000/- and other income is just Rs 2500/-.

so interest calculation should be only on other income which should be hardly Rs 100/- but its is showing me Rs 3200/-.

Z ( ) (2960 Points)
Replied 29 July 2014

Yes interest calculation should have been only in respect of other income.Have you tried excel utility? Is it doing the same?

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 29 July 2014

@ mitesh... can you provide me details regarding your itr. such as income under 44ad, exempt income, other income and dediction claimed. i will be happy to help you thereafter.

CA Mitesh N Kothari (9821662799) (391 Points)
Replied 29 July 2014

Inc us 44AD 6,50,000

80-c: 100000

80-D 15000

IFOS:2500

CA Mitesh N Kothari (9821662799) (391 Points)
Replied 29 July 2014

@ Z It is calculated on whole Income.

Z ( ) (2960 Points)
Replied 29 July 2014

So you are saying that that income which is otherwise exempted from provisions of advance tax,will also be liable to interest which is infact compensation for delaying the advance tax to govt.?

CA Mitesh N Kothari (9821662799) (391 Points)
Replied 29 July 2014

I am saying that ITR 4 provided by income tax Department is calcuating wrong interest.

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 29 July 2014

@ mitesh... you are correct... it is calculating interest... and this is wrong... though you can edit this field and change intt amt to zero... but dept. should be informed for this error.... i will be writing a mail to dept. today for this... i request you also to do the same.