Tax relief u/s 89 deduction for calculating int u/s 234b &c

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This query is : Resolved

HIMANGI GADIYA (Querist)

16 January 2018 Is tax relief u/s 89 is deducted for the purpose of calculating interest u/s 234B & 234C. On bare reading of these section, it is clear that relief u/s 89 is not deductible However practically relief u/s 89 should be allowed as deduction for calculating interest u/s 234B & 234C. CPC processed an ITR for AY 17-18 without considering relief u/s 89 for the purpose of calculating interest under the said sections.
details are as under:
Gross tax liability before tax relief : 284773/-, tax relief u/s 89: 138867/-, TDS: 221434/-
interest u/s 234B: 4431/- and u/s 234C: 3197/-.
total interest is 7628/-. The return was filed before the due date.
Is there any case law on which ground a rectification request be filed.

Renu Goyal

Renu Goyal (Expert)

19 January 2018 have you furnished from 10E ?

HIMANGI GADIYA

HIMANGI GADIYA (Querist)

20 January 2018 Yes, and CPC had also allowed the same as relief u/s 89..but they did not consider the relief for the purpose of calculating interest...

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