Interest 234c for 44 ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2014 Sir,

Please clarify the following issue:

Assesse filed Income Tax Returns for Assessment Year 2014-15 in Form 4S for presumptive income declared u/s 44AD. But he has paid tax of Rs25000/- He has not paid any advance tax. Is he liable to pay advance tax u/s 44aAD and he is liable to pay interest u/s 234C. In assessment order Income tax department send notice to pay interest u/s 234C. Return is filed with due date i.e.31/07/2014. Please give reply the assessment order is correct. If not correct what steps to take to against order passed. Please give reply immediately.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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09 October 2014 Advance tax is not applicable if return is filed u/s 44AD but if there is other income as well then advance tax liability may arise if tax payable is more than Rs. 10000.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2014 Sir,

Thank you for your reply. The assesse has having other income also. The Income Tax Department send demand notice for non payment of advance tax interest u/s 234C. Is there any way to protest against the demand? If not what is the procedure to pay and close the issue.

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2014 Sir,

Thank you for your reply and I have received reply from one of the expert stating that Interest u/s 234B, 234C will not applicable for 44AD assesses and given suggestion to apply for rectification of the Assessment Order. There is should only one answer. Please give correct answer to take further decision.

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