Mitali
Quick Summary
A Taxpayer paid Self-Assessment Tax above Rs.10,000 in the AY 2024-25, from the detail of Self-Assessment Tax payment, the IT department issues notices to a Taxpayer in the AY 2025-26. Reason To Issue the Notice Income Tax Department has flagged this because as per Section 208 of the Income-tax
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FAQ :
The IT department issues notices because paying Self-Assessment Tax instead of the mandatory Advance Tax, when your tax liability exceeds Rs.10,000, violates Section 208 of the Income-tax Act. This can attract interest and penalties.
Every person is required to pay advance tax if their tax liability during a financial year is Rs.10,000 or more, after deducting TDS/TCS/reliefs.
Default in paying advance tax attracts interest under Section 234B of the Income Tax Act. There can also be penalties under Section 234C for non-payment or late payment.
When using Challan 280, you need to specify '100' as the 'Type of Payment' to indicate that you are paying Advance Tax.
The IT department requested a copy of the Challan payment for the 4th instalment of Advance Tax paid for AY 2025-26 via email by 18th March 2025.
To avoid interest and penalties, you must estimate your income accurately and pay your advance tax on or before the due dates during the same financial year.
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