Unique problem related to tax paid

Tax queries 1185 views 4 replies

chintan

practising CA

229 Points Posted on 10 August 2012

concerned year: Assessment year 2011-12

one of our client had to pay advance tax pertaining to this year. we gave him the challan on 26/03/2011. however, he paid the same in to his bank on 05/04/2011.
Now as per details sent by bank to IT dept, this must have gone to Advance tax code (as is reflected in Form 26AS).

However, Income tax department ( as per 143-1 intimation) has disallowed this tax payment. (we had put this amount in Advance tax column).

Now filing for rectification, should we file this amount under 'Advance tax' or 'S.A. tax' column ?

Thank you.

Replies (4)

CA. Subhash Dangi

Chartered Accountant

1784 Points Posted on 10 August 2012

It can not be Advance Tax as it is not paid within the due date.

U can rectify by showowing either as Self Assessment Tax including the applicable Interest U/s 234B & 234C or as Tax on Regular Assessment if the demand notice attached as per intimation U/s 143 (1).

Durga Prasad

Trainee

392 Points Posted on 10 August 2012

I agree with Mr. Subhash and i think advance tax can not be paid after 15th march, whereas you have given the challan of advance tax on 26th march 2011.

CA Gnanika

485 Points Posted on 10 August 2012

Agreed with Mr Subhash & Mr Durga prasad, it cannot be treated as advance tax payment.

But however, Income tax department ( as per 143-1 intimation) cannot ignore this tax payment.

Just reconsider the facts of the case & file rectification.

Guest

the same problem was happened in case of one of our client......... just claim that challan as Advance Tax only while filling rectification and write a note there................... do not forget to mention challan details, cpc gives the credit in such cases...........