Communication on arrear demand

Hi Manu,

I think you should just say that you believe that you have paid your taxes correctly & carry with you the acknowledged tax returns + tax challans. I feel the tax payments have not got adjusted correctly in their system. The IT Officer will be able to shed some light on the same.

- Bosco

Thanks Bosco.

Any idea how the demand is calculated? I mean let's assume that AO find that IT is underpaid by 10K, then is there some penality added? If yes, how much % ?

And the Interest part on the amount arrived? If yes, from when; say if the demand is for AY 2008-09, then is it calculated from 1/04/2008 ;; and what's the rate of interest (12%?)

Hi Manu, i am a layperson like yourself .... any CA will be able to guide you on this .... request CA's to respond .... ps : maybe Manu you can even send private messages to 1-2 CA's who have responded to this thread for these clarifications (so that they get an alert).

Hi, I have received similar demand for AY08-09. While Form-16 reflects the whole TDS is deducted & deposited, Form-26AS shows credit of lesser TDS and that is why the arrear demand has been raised. Kindly advise what is to be done to get 26AS rectified?

Kapil 

My CA has followed up recently & has been told to check back in April. Obviously, reversing the errorneous demands before 31st March will involve IT Dept having to make refunds / refund adjustments in many cases, so it will get done only post 31st March.