03 April 2024
20% advance payment in appeal file to CIT(A) for income tax is to be paid of tax or total demand issued of demand notice issued u/s 156 for stay?
03 April 2024
20% advance payment in appeal file to CIT(A) for income tax is to be paid of tax or total demand issued of demand notice issued u/s 156 for stay
03 April 2024
total disputed demand. Lets say your original taxable income was Rs 1000, you paid Rs 100 as tax. They make an addition of another Rs 1000, and make additional tax demand of Rs 200/- So, the total tax payable is Rs 300/- The department can ask for 20% of this 300 only. ie Rs 60/- and your argument will be that it is already met by by the tax already paid.
Now the above is theoretical thing (like in this case https://taxguru.in/income-tax/department-calculate-20-per-assessment-order-giving-effect-tds-tcs.html)
In reality, AO often ask for 20% of the balance tax demand over and above the tax already paid. So they may ask you to pay 20% of 200.
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