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Applicability of Advance tax for Senior Citizens and interest levied u/s 234B & 234C.

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Nand

service

46 Points Posted on 23 September 2021

An Assessee became Senior Citizen during the year FY 2020-21. Only for a part of the year he was in employment and retired. TDS was deducted and remitted for I Qtr. Thereafter, he has not remitted any Advance tax, as he is a Senior citizen having income from Salary, pension and interest. However, one small payment was received as Professional fee during the FY for which TDS u/s 194JB was deducted and reflecting in AS26. Had filed ITR 1. Now, on assessment, interest u/s 234B & 234C are levied.

a. whether he is liable under the provisions to pay interest as levied

b. whether the small amount received as prof service charges can trigger for the demand of Interest u/s 234B & C

c. If not, what is the next course available to him ? Pl clarify and advise.

Replies (3)

Quick Summary

This discussion explores whether a senior citizen, who partially worked and retired during the financial year, is liable for interest under sections 234B and 234C of the Income Tax Act. The query focuses on a situation where TDS was deducted on salary and a small professional fee, leading to an assessment notice. The consensus suggests that even a small professional fee can trigger the need to assess income under the head PGBP, potentially making the senior citizen liable for the levied interest.