REGARDING AMOUNT OF DISPUTED DEMAND

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When completing Form 35 for a disputed demand, you should use your net tax liability, which includes any disputed tax. If you only consider the gross tax liability, the interest amount might be deemed accepted by the assessee. However, the interest liability will be recalculated based on the final tax liability assessed after the appellate order.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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09 December 2024 IN FORM 35, AMOUNT OF GROSS TAX LIABILITY TAKEN INTO ACCOUNT OR WITH NET TAX LIABILITY AMOUNT (WITH INTERST UNDER SECTION 234) NEED TO TAKEN INTO ACCOUNT?

IF WE TAKE INTO CONSIDERATION, THE AMOUNT OF NET TAX LIABILITY (WITH INTEREST) THEN 20% IS PAYABLE ON TAX AMOUNT OR (TAX + INTEREST) AMOUNT.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 December 2024 When completing Form 35, include your net tax liability amount, i.e. the disputed tax liability.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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09 December 2024 IF WE ONLY TAKE GROSS TAX LIABILITY, CAN LAW DEEMED THAT INTEREST AMOUNT ACCEPT BY ASSESSEE? AND OFFICER CAN UTILISE POWER GIVEN TO THEM UNDER SECTION 226(3) TO RECOVER INTEREST AMOUNT?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 December 2024 No, the interest liability would be recalculated as per the tax liability assessed as per the appellate order.

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