Hello everyone in the forum. I have recieved outstanding demand from Income tax dept for AY 2010-11. Actually during FY 2009-10, I worked in Organization A from April-mid-Sept' 2009 and in Organization B from Mid Sept' 2009-Mar' 2010. I drew salary 500,126 from organization A and got exemption of 78,263 u/s 10 and paid tax 30,424 as TDS. In organization B, I drew salary 584,586, got exemption of 153,827 u/s 10 and paid tax 31,900 as TDS. While filing ITR in July' 2010 my CA told that my income and exemption at Organization A should have been considered in organization B and they should have deducted more tax. He recalculated tax liability based on salary from both organizations and interest from savings account, which I paid as self assessment tax in July' 2010. The amount was 72,500 (apprx break-up was 67,500 for income and 5000 for earning interest on saving bank account). Now the Income tax dept has imposed fine of 5532 u/s 234B and 2681 u/s 234C. I want to know what is the basis of these penalties and more importantly is the penalty amount correct?
Satya
CAclubindia
