Interest under sec 234b
This query is : Resolved
29 May 2014
I am a salaried tax payer. In my return for a.y. 2011-12, i did not declare SB interest of Rs 2000.00 or so but VOLUNTARILY declared it during assessment which was completed in Jan. 2014. As per findings of IT Officer, my net tax liability was assessed as rs 222305. I
had TDS of rs 221670 which has been recorded in assessment. Thus i paid rs 635.00 less as Income Tax. The ITO demanded Rs 8580.00 as tax i.e. rs 635 + rs 7944 interest. The calculation is in a computer print out. To avoid mental agony i paid in Feb. 2014 without checking on seeing computerized calculation. But I think there is a mistake and the demand is excessive. Is it too late to seek clarification/rectification as more than 3 months have passed
had TDS of rs 221670 which has been recorded in assessment. Thus i paid rs 635.00 less as Income Tax. The ITO demanded Rs 8580.00 as tax i.e. rs 635 + rs 7944 interest. The calculation is in a computer print out. To avoid mental agony i paid in Feb. 2014 without checking on seeing computerized calculation. But I think there is a mistake and the demand is excessive. Is it too late to seek clarification/rectification as more than 3 months have passed
30 May 2014
interest u/s 234 B if charge for installment of advance tax not paid on time .
if you send the total tax liability when you file the return then it easy to calculate the intt. amount.
if you send the total tax liability when you file the return then it easy to calculate the intt. amount.
30 May 2014
Sir, As can be seen from above total tax liability at time of filing retirm was Rs 22305.00. I had paid Rs 221670.00 was paid by TDS & thru challan in Bank because of Intetest Income. Thus IT was LESS paid by Rs 635.00. Interest claimed in asessment and paid by me is Rs 7944.00. I think this is excessive. Period of appeal is over. Can I seek rectification/refund if the ITO has made a mistake. A.Y. is 2011-12
30 May 2014
Sir, As can be seen from above total tax liability at time of filing retirm was Rs 22305.00. I had paid Rs 221670.00 was paid by TDS & thru challan in Bank because of Intetest Income. Thus IT was LESS paid by Rs 635.00. Interest claimed in asessment and paid by me is Rs 7944.00. I think this is excessive. Period of appeal is over. Can I seek rectification/refund if the ITO has made a mistake. A.Y. is 2011-12
30 May 2014
Sir, As can be seen from above total tax liability at time of filing retirm was Rs 22305.00. I had paid Rs 221670.00 was paid by TDS & thru challan in Bank because of Intetest Income. Thus IT was LESS paid by Rs 635.00. Interest claimed in asessment and paid by me is Rs 7944.00. I think this is excessive. Period of appeal is over. Can I seek rectification/refund if the ITO has made a mistake. A.Y. is 2011-12
30 May 2014
Sir, As can be seen from above total tax liability at time of filing retirm was Rs 22305.00. I had paid Rs 221670.00 was paid by TDS & thru challan in Bank because of Intetest Income. Thus IT was LESS paid by Rs 635.00. Interest claimed in asessment and paid by me is Rs 7944.00. I think this is excessive. Period of appeal is over. Can I seek rectification/refund if the ITO has made a mistake. A.Y. is 2011-12
30 May 2014
Sir, As can be seen from above total tax liability at time of filing retirm was Rs 22305.00. I had paid Rs 221670.00 by TDS & thru challan in Bank because of Intetest Income. Thus IT was LESS paid by Rs 635.00. Interest claimed in asessment and paid by me is Rs 7944.00. I think this is excessive. Period of appeal is over. Can I seek rectification/refund if the ITO has made a mistake. A.Y. is 2011-12
30 May 2014
Sir, As can be seen from above total tax liability at time of filing retirm was Rs 22305.00. I had paid Rs 221670.00 by TDS & thru challan in Bank because of Intetest Income. Thus IT was LESS paid by Rs 635.00. Interest claimed in asessment and paid by me is Rs 7944.00. I think this is excessive. Period of appeal is over. Can I seek rectification/refund if the ITO has made a mistake. A.Y. is 2011-12
30 May 2014
Sir, As can be seen from above total tax liability at time of filing retirm was Rs 22305.00. I had paid Rs 221670.00 by TDS & thru challan in Bank because of Intetest Income. Thus IT was LESS paid by Rs 635.00. Interest claimed in asessment and paid by me is Rs 7944.00. I think this is excessive. Period of appeal is over. Can I seek rectification/refund if the ITO has made a mistake. A.Y. is 2011-12
30 May 2014
Sir, As can be seen from above total tax liability at time of filing retirm was Rs 22305.00. I had paid Rs 221670.00 by TDS & thru challan in Bank because of Intetest Income. Thus IT was LESS paid by Rs 635.00. Interest claimed in asessment and paid by me is Rs 7944.00. I think this is excessive. Period of appeal is over. Can I seek rectification/refund if the ITO has made a mistake. A.Y. is 2011-12
01 August 2024
In your situation, where you believe the interest charged is excessive and the period for filing an appeal has passed, you still have a few options to address the issue:
### **1. **Rectification Application under Section 154**
You can file a rectification application under Section 154 of the Income-tax Act. This provision allows you to correct any apparent mistake in the assessment order. Since you believe the interest calculation is incorrect, you can request a rectification.
**Steps:**
- **File a Rectification Request:** You can file a rectification request online through the Income Tax e-filing portal or manually with the jurisdictional Assessing Officer (ITO).
- **Provide Details:** In your application, explain the mistake, provide details of the correct calculation, and request the necessary correction.
**How to File:**
- **Online:** Log in to the Income Tax e-filing portal, go to the 'Services' tab, and select 'Rectification of Return'. Follow the instructions to submit your request.
- **Offline:** Prepare a letter addressed to the ITO explaining the error and attach any supporting documents. Submit it to the tax office where your return was assessed.
**Important Points:**
- **Time Limit:** There is no fixed time limit for rectification under Section 154, but it is generally advisable to file it as soon as possible after discovering the mistake.
- **Supporting Documents:** Include a detailed explanation and any supporting documents or calculations that show the correct interest amount.
### **2. **Refund Claim**
If the rectification application is accepted and it is determined that excess interest was charged, you can claim a refund for the excess amount paid.
**Steps:**
- **Refund Process:** The excess amount will be adjusted or refunded based on the rectification outcome.
- **No Separate Application Required:** Typically, the refund is processed automatically if the rectification results in a lower demand.
### **3. **Contact the Assessing Officer**
If you face difficulties with the online process or need further clarification:
- **Visit the Tax Office:** You can visit the office of the Assessing Officer who handled your case to discuss the issue.
- **Request Clarification:** Ask for a detailed explanation of the interest calculation and seek corrections if necessary.
### **4. **Appeal to the Commissioner of Income-tax (Appeals)**
If you believe the assessment was incorrect and the rectification application does not resolve the issue:
- **Filing an Appeal:** You may file an appeal with the Commissioner of Income-tax (Appeals) if the issue is significant and involves points that were not adequately addressed during the assessment or rectification process.
### **Summary**
To address your concerns about the excess interest charged:
1. **File a Rectification Application** under Section 154 with the ITO.
2. **Seek a Refund** for the excess amount if the rectification is approved.
3. **Contact the Assessing Officer** for further clarification or assistance if needed.
Ensure you act promptly to resolve the issue and rectify any mistakes in the assessment.
### **1. **Rectification Application under Section 154**
You can file a rectification application under Section 154 of the Income-tax Act. This provision allows you to correct any apparent mistake in the assessment order. Since you believe the interest calculation is incorrect, you can request a rectification.
**Steps:**
- **File a Rectification Request:** You can file a rectification request online through the Income Tax e-filing portal or manually with the jurisdictional Assessing Officer (ITO).
- **Provide Details:** In your application, explain the mistake, provide details of the correct calculation, and request the necessary correction.
**How to File:**
- **Online:** Log in to the Income Tax e-filing portal, go to the 'Services' tab, and select 'Rectification of Return'. Follow the instructions to submit your request.
- **Offline:** Prepare a letter addressed to the ITO explaining the error and attach any supporting documents. Submit it to the tax office where your return was assessed.
**Important Points:**
- **Time Limit:** There is no fixed time limit for rectification under Section 154, but it is generally advisable to file it as soon as possible after discovering the mistake.
- **Supporting Documents:** Include a detailed explanation and any supporting documents or calculations that show the correct interest amount.
### **2. **Refund Claim**
If the rectification application is accepted and it is determined that excess interest was charged, you can claim a refund for the excess amount paid.
**Steps:**
- **Refund Process:** The excess amount will be adjusted or refunded based on the rectification outcome.
- **No Separate Application Required:** Typically, the refund is processed automatically if the rectification results in a lower demand.
### **3. **Contact the Assessing Officer**
If you face difficulties with the online process or need further clarification:
- **Visit the Tax Office:** You can visit the office of the Assessing Officer who handled your case to discuss the issue.
- **Request Clarification:** Ask for a detailed explanation of the interest calculation and seek corrections if necessary.
### **4. **Appeal to the Commissioner of Income-tax (Appeals)**
If you believe the assessment was incorrect and the rectification application does not resolve the issue:
- **Filing an Appeal:** You may file an appeal with the Commissioner of Income-tax (Appeals) if the issue is significant and involves points that were not adequately addressed during the assessment or rectification process.
### **Summary**
To address your concerns about the excess interest charged:
1. **File a Rectification Application** under Section 154 with the ITO.
2. **Seek a Refund** for the excess amount if the rectification is approved.
3. **Contact the Assessing Officer** for further clarification or assistance if needed.
Ensure you act promptly to resolve the issue and rectify any mistakes in the assessment.
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