Hi folks
Recently received IT notice u/s 154 and asked to me to pay 7290 u/s 234B and 234C for assessment year 2008-09. I feel the amount charged under 234B and 234C is overcharged and not proper. Need your suggestions/feedback on this
For A.Y 2008-09, there was a shortfall of Rs 36825 as advance tax in the final installment which was to be paid by 15-March-2008. The IT filing was done on 31-July-2008 on time.
As per 234C rule , it should be 1% of shortfall amount x 1 monthly = Rs 368
As per 234B rule , it should be 1% of shortfall amount x 4 months ( counting from April-2008 to July-2008) = 368 x4 = 1472
So the total amount should be 368+1472=1840 as per my calculations.
But the IT dept sent a notice of Rs 3049 under 234C and 4568 for 234B , so the total amount demanded as per IT notice is 7290.
So there is a difference of 5450 between the IT notice and calculations done by me.
I like to know whether the calculation done by me for 234B and 234C is valid or not
Thanks
Josh
CAclubindia
