I submitted my Income Tax Return for AY 2025-26 duly validating it in the e-filing portal. It showed some Interest due under Sec 234B which was paid, but it didnt show any interest u/s 234C.

2. On November 6, 2025, I received an Intimation u/s 143(1) wherein an amount of Rs 14,936 was levied under Sec 234C and interest under Section 234B was extinguished (!). I paid the demand of Rs 8740 (balance due) on Nov 11,2025. 

3. Thereafter, I received a Rectification Notice dated Dec 24, 2025 initiated u/s  154 by the department stating the following:

 "On verification of records, it has been observed that interest under Section 234B was erroneously omitted from calculation in the previous order dated Nov 11,2025. This omission has resulted in short levy of interest u/s 234B. Since this is a mistake apparent from record, the said order is proposed to be rectified under Section 154 of the Income Tax Act 1961".

 4. Subsequently, I received another Demand Notice  dated January 12, 2026 under Sec 154 of the IT Act. In the accompanying Order dated January 12, 2026  – Demand of Rs 15540 was made (Rs 6796 under Sec 234B and Rs 14936 under Sec 234C adjusted for Rs 6197 paid at the time of submission of my return). In this calculation, tax paid amounting to Rs 8740 on Nov 11,2025 was, however, not taken into consideration.

5. The Demand was paid on January 22/ January 29, 2026  after adjusting for Rs 8740 paid earlier (Sr No.2).

6. In the above demand, a penal interest of Rs 310 was also charged for the delay in payment of the demand of Rs 15,540. Firstly, out of Rs 15540, Rs 8740 paid on Nov 11, 2025 against Order Date of Nov 6, 2025 and thus no interest should have been charged on Rs 8740. Also, the revised demand was made only vide Order dated January 12, 2026 and  30 days period u/s 220(2) should have been counted from the date of the revised order and not since Nov 6, 2025 (when original demand was raised u/s 143(1).

7.  Still I paid Rs 310 alongwith the pending demand. However, recently on a visit to the eportal site of Income Tax, India I found that another Rs 90 is being shown as pending interest.   

8. I raised a Grievance in the Income Tax portal seeking an explanation for the interest amount charged. But my grievance was closed without any details - staing mererly that there is a demand due to interest u/s 220(2), which is levied due to delay in payment of demand raised (after 30 days of receiving the Demand Notice u/s 156). Hence it is a payable demand.  

Could anyone clarify whether the IT Department has rightly arrived at the interest u/s 220(2), given the above facts? 

Thanks for responding