Non payment of demand of income tax

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Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2011 What can be the consequences of non payment of huge demand of Income tax by an Individual as he has no properties or bank balances in his name and demand has been raised due to disallowance of major expenses due to non deduction of TDS.

CA PRAVIN

CA PRAVIN (Expert)

08 October 2011 Demand should be paid within 30 days from the date of notice. If not paid u will be treated as assessee in default

Sec 220(6):-Any amount, otherwise than by way of advance tax, specified as payable in a notice of demand under section 156 shall be paid within thirty days of the service of the notice at the place and to the person mentioned in the notice :

Provided that, where the Assessing Officer has any reason to believe that it will be detrimental to revenue if the full period of thirty days aforesaid is allowed, he may, with the previous approval of the Joint Commissioner, direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of thirty days aforesaid, as may be specified by him in the notice of demand.

(2) If the amount specified in any notice of demand under section 156 is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one and one half per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2011 Thanks for responding but the assessee in question has no capacity to pay such a huge demand and has no property in his name. Then in that case what may be the options for him

CA PRAVIN

CA PRAVIN (Expert)

08 October 2011 Apply to A.O.in writing stating the real fact, if he satisfies about reasons, he may give time for payment.

But u have to pay it with interest.

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2011 Sir, but the client has neither any capacity to pay such a huge demand nor any asset. will there any criminal proceedings against him

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