Mitali
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 Act every person is required to pay advance tax if the tax liability during a financial year is more than Rs.10,000 or more after deducting TDS/TCS/reliefs.
It also further pointed out that default in payments in advance tax u/s 208 of the Act attracts interest u/s 234B of the income tax act.
So they are just giving reminder to pay advance tax FY 24-25 in time, so that you do not have to pay tax under self assessment with interest.
And they are asking for proof of payment.
Type of Payment To Specify
While using Challan 280, you need to specify the "Type of Payment" to indicate whether you are paying advance tax or self-assessment tax.
- "100" is for Advance Tax
- "300" is for Self-Assessment
Asked Proof For The Deposit
They also requested to submit the copy of Challan payment of 4th instalment of Advance Tax paid by you for the AY 2025-26 through e-mail by 18th Mar 2025.
Conclusion
Paying Rs.10,000 above as Self-Assessment Tax instead of the mandatory Advance Tax violates Section 208 of the Income-tax Act as it attracts interest and penalties under Sections 234B and 234C for non-payment or late payment of advance tax.
To avoid such interest in the future, taxpayers must estimate their income accurately and pay advance tax on or before the due dates during the same financial year.
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