Demand u/s 143(1)(a)

Section 234a is applicable in case you are filing a belated return.

As you have filed the belated return so you have to paid interest U/s 234a.

If not paid then you have to pay the interest portion.

The claim seems to be incorrect. You can file rectification request through online efiling portal, under the tab of "e-file".

Income Tax Return for a financial year need to be filed within the time limit prescribed for each year for you. Your failure to file a return within this prescribed time or not file at all will attract this Interest.

Now, when you do not file your returns or miss the due date, you could be in one of these 3 distinct positions:

1. You have taxes outstanding to be paid to the IT department
2. You are eligible for a tax refund from the IT department
3. Your taxes have been perfectly paid with no refund expected or taxes payable.

If you fall into buckets “2” or “3”, you do not have to worry too much about late filing of your tax returns as interest may not be applicable in these two scenarios.

However, your Assessing Officer may still choose to charge some interest, this has been left to his discretion.

Originally posted by : SANJEET KUMAR
	Income Tax Return for a financial year need to be filed within the time limit prescribed for each year for you. Your failure to file a return within this prescribed time or not file at all will attract this Interest. Now, when you do not file your returns or miss the due date, you could be in one of these 3 distinct positions: You have taxes outstanding to be paid to the IT department You are eligible for a tax refund from the IT department Your taxes have been perfectly paid with no refund expected or taxes payable. If you fall into buckets “2” or “3”, you do not have to worry too much about late filing of your tax returns as interest may not be applicable in these two scenarios. However, your Assessing Officer may still choose to charge some interest, this has been left to his discretion.

So in my case there is no tax payable as whole Tax Liability was settled by TDS...........so i need not worry (category 3).......... and also what do i need to do now

well paying tax is not the problem ..... i wanted to know the validity of the demand

Section 234A interest is levied when there is an outstanding tax liability if the entire tax liability is settled in the form of TDS and there is no tax payable after considering TDS then interest u/s 234A is wrongly levied. You can file a rectification application.

THE DEMAND NOTICE IS PURELY BASED ON OUTSTANDING AMOUNT AFTER RECONCILLING ALL TDS DEDUCTED BY COMAPNY/ BANKS ETC. 

NOW THE DEMAND NOTICE NED TO BE NEUTALISED -

- BY RECTIFICATION REQUEST 

- BY CHECKING ACTUAL VALUE OF TDS DEPOSITED BY COMPANY/BANK  OR NOT OR LATE DEPOSITED OR LESS AMT DEPOSITED ETC. ( TAKE Form-16A from comapny//Bank and see any mismatch)

- SEND YOUR BASE DOCUMENTS SIGNED BY AUTHORITY ( FORM-16A BY COMPANY ) / 26AS FROM IT WEBSITE /TRACES TO AO SHOWING NO TAX LIABILITY. AO MAY SETTLE OR CARRYFORWARD FOR NEXT YEAR.

- LEAVE IT UNPAID AS IT IS LESS AMOUNT AND WILL CARRY FORWARD IN NEXT FY/AY RETURN WITH LITTLE INTREST. THIS IS TO BE SETTLED BY TAX PAYES DIRECTLY IN HIS NEXT YEAR RETURN.

Regards