Guidance Required on Notices Under Section 234B After Filing Updated Returns

Hello All,

I hope everyone is doing well.

Our clients have been receiving notices demanding additional interest under Section 234B, along with substantial penalties of 50% and 25%, even after filing updated income tax returns. In these updated returns, political donations were duly added and the corresponding taxes were paid.

Our group members across our group are facing similar notices despite having already paid the taxes while filing the updated returns. This has led to considerable confusion regarding the correctness of these demands.

Please guide on how to approach this matter and the appropriate next steps to be taken.

Thank you in advance for your support.

Warm regards,

Virag Shah.

Replies (2)
Quick Summary
Notices demanding Sec 234B interest/penalties after filing updated returns may be system errors, as additional tax is already paid. File rectification u/s 154, and escalate via grievance or appeal if needed.

Interest u/s 234B and penalties demanded after filing updated returns are legally incorrect because updated return already includes statutory additional tax. The CPC notices are system-driven errors and must be challenged through rectification u/s 154, followed by grievance or appeal if required.

Thank You. Aashokbhai.

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