Demand order against Section 234B

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Dear Sir/Madam,

 My client received demand order against Sec 234B.

In my client case , She is Senior citizen and has  Rental income , PGBP ( But Exempt Income -under  Partnership firm) ,CG and other Income.

and exempt income are not part of total income so.

Even though she is Senior citizen paid 87.5% of Advance tax .

as per above Case, give some suggestion. 

 

 

Replies (1)

To address the senior citizen's situation, consider the following suggestions:

 Assessment of Total Income 1. *Re-calculate total income*: Ensure that only taxable income is included in the total income calculation. Exclude exempt income, such as interest from tax-free bonds or dividends from domestic companies.

2. *Verify tax deductions*: Confirm that all eligible tax deductions, like Section 80C (e.g., PF contributions, life insurance premiums), Section 80D (health insurance premiums), and Section 80TTB (senior citizen's interest income), are claimed.

Advance Tax Payment 1. *Re-compute advance tax liability*: Based on the revised total income calculation, re-compute the advance tax liability. Consider the senior citizen's tax slab and applicable tax rates.

 2. *Adjust advance tax payments*: If the re-computed advance tax liability is lower, consider adjusting the advance tax payments to avoid overpayment.

Exemptions and Deductions 1. *Claim senior citizen exemptions*: Ensure that the senior citizen claims exemptions available to them, such as:

1. *Section 80TTB*: Exemption on interest income from deposits with banks, co-operative societies, or post offices.

 2. *Section 197A*: Exemption from TDS on interest income from deposits.

2. *Optimize tax deductions*: Help the senior citizen optimize tax deductions by investing in tax-saving instruments, such as:

 1. *Section 80C*: Eligible investments like PF, life insurance premiums, or ELSS mutual funds.

 2. *Section 80D*: Health insurance premiums for self, spouse, and dependent children.

Compliance and Review 1. *Verify tax compliance*: Ensure that all tax-related documents, such as Form 26AS, are accurate and up-to-date. 2. *Review tax strategy*: Periodically review


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