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Demand of Rs. 3 by intimation under U/S 143(1)

nba (abcd) (50 Points)

06 January 2011

I have received intimation under U/S 143(1) demanding Rs. 3 as tax payable. What should I do? Shall I pay it? It is very small amount and do IT usually demand it?

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23 Replies

Dhawal Mohnot (Practicing) (449 Points)
Replied 06 January 2011

there seems to be some error. Department does not generally send notices for 3 rupees. You can meet the assessing officer in person and clarify the same.

Deepesh Khatri (CA) (167 Points)
Replied 06 January 2011

Read the order and check the reason for the Rs. 3 demand. File for rectification u/s 154 if there is mistake is mistake in computation u/s 143(1); otherwise pay Rs. 3 and send a letter intimidating the AO with the challan.

nba (abcd) (50 Points)
Replied 06 January 2011

Demand is for the difference in calculating interest under section 234C. CPC calculated Rs. 3 more than what I did. I filled return electronically and got digitally signed intimation via email.

Dhawal Mohnot (Practicing) (449 Points)
Replied 06 January 2011

well... for a change ..... we are experiencing an accurate administration.....

M .K. Jha (CA Final) (484 Points)
Replied 06 January 2011

In My Opinion u should hav to pay and deposited such amount with rounded of to Rs 10/-

(Guest)

Originally posted by : M .K. Jha
	In My Opinion u should hav to pay and deposited such amount with rounded of to Rs 10/-

if rounded off no tax need to be paid

Dhawal Mohnot (Practicing) (449 Points)
Replied 06 January 2011

thats right ... no tax be paid if rounded off ..... and under the new direct tax code we are gonna deal with rounding off to Rs.100/- and multiples. So as such this demand does not hold any ground and usually ignored by the department.

Deepesh Khatri (CA) (167 Points)
Replied 06 January 2011

The liability should be total of tax plus correct interest under respective sections, rounded of to nearest Rs. 10. If your calculation is right, file for rectification online u/s 154 on this website https://incometaxindiaefiling.gov.in/portal/index.do

If hes right in calculation and rounding off and demand stands correct, pay Rs. 3.

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komal Jangir (Article) (177 Points)
Replied 06 January 2011

Less than Tax amounting to Rs. 100 no need to be deposit.

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Vijay Parmar (student) (261 Points)
Replied 06 January 2011

TAX Amount less then 100/- is not necessary to payable and refund upto Rs.100 is also not issued by income tax department ... so you have not necessary to pay amount Rs.3 .. see u r notice last page .. they mention it... dont pay tax upto Rs.100.00

1 Like