REGARDING ADVANCE PAYMENT MADE IN APPEAL FILED TO CIT(A) IN INCOME TAX

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the 20% advance payment required when filing an income tax appeal to the CIT(A). It explains that the payment is generally calculated on the total disputed tax demand, not the entire outstanding demand notice. While theoretically it should be 20% of the total tax payable, in practice, tax officers may sometimes request 20% of the balance tax demand. The option to request a waiver or stay on the overall demand recovery proceedings is also mentioned.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)

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?

Nikhil Kaushik

Nikhil Kaushik (Expert)

03 April 2024 you can request for waiver as well as stay on overall demand recovery proceedings.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)

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

Nikhil Kaushik

Nikhil Kaushik (Expert)

03 April 2024 if you wish to pay, then 20% of the total tax demand raised in the demand notice.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)

03 April 2024 it would be total tax and not total outstanding demand issued under notice of 156 right?

Nikhil Kaushik

Nikhil Kaushik (Expert)

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now