Unreasonable Demand


This query is : Resolved 

Quick Summary
A taxpayer is seeking advice on appealing a self-assessment tax demand after using the 'pay later' option. They were surprised by a 33% penalty, believing only 1% interest should apply. The tax calculation itself matches their figures, but the overall demand is significantly higher. They are exploring options for appeal, including paying a portion of the demand and the appeal fee.

10 October 2023 Hi team, Any idea if I can go for an appeal after paying the required demand. I used the e-pay later option at the time of filing to pay self assessment tax thinking that I can pay it later once the demand is served. However I noticed that a 33% penalty has been levied without any clear indication of the reason. No update on grievance raised so far. The tax calculated under Section 143 matches with my calculation. However the demand is much higher. How can this be possible. Ideally there should not anything more than the 1% interest. Penalty cannot be at the discretion of AO right ? Any inputs on how i can solve this problem.


10 October 2023 Pay only 20% of the demand and go for appeal with payment of Rs 1000 appeal fee.

11 October 2023 Ok sir. will explore that option.

thank you.

12 October 2023 You are welcome..
...


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