Relief under section 89
This query is : Resolved
29 November 2017
My client joined her job in FY 2014-15
But she received her first salary in FY 2016-17. In November 2016 only she received her salary for FY 2014-15 & 2015-16.
In FY 2016-17 she received RS 11,70,361. ( Rs 412,634 as current year salary and Rs 757,727 as arrears salary )
On computing the tax liability after 80 C deductions of Rs 97,378 her tax liability become RS 151,301 and relief under section 89 is Rs 147,025. So her employer deducted Rs 4,276 as TDS
She filed the return
Now tax demand notice received for interest u/s 234 B & 234 C received amounting Rs 14,771
Interest U/s 234 B & C calculated for the total tax liability of 151,101.
Is it correct ?
But she received her first salary in FY 2016-17. In November 2016 only she received her salary for FY 2014-15 & 2015-16.
In FY 2016-17 she received RS 11,70,361. ( Rs 412,634 as current year salary and Rs 757,727 as arrears salary )
On computing the tax liability after 80 C deductions of Rs 97,378 her tax liability become RS 151,301 and relief under section 89 is Rs 147,025. So her employer deducted Rs 4,276 as TDS
She filed the return
Now tax demand notice received for interest u/s 234 B & 234 C received amounting Rs 14,771
Interest U/s 234 B & C calculated for the total tax liability of 151,101.
Is it correct ?
CA R SEETHARAMAN
(Expert)
29 November 2017
It is not right file rectification u/s 154
TDS fully deducted interest can't be levied.
TDS fully deducted interest can't be levied.
CA R SEETHARAMAN
(Expert)
30 November 2017
File rectification u/s 154 no need to pay for the demand notice.
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