Dear All,
I had received a demand notice from IT for the AY 2009-2010(FY 2008-09) for an amount of Rs 297831/-.I received this notice letter on 1st Jan 2013 and the matter is with AO.
The history is as below:
For the FY 2008-09,I was in India till dec(9months) and rest 3 months in Country A(Jan - Mar 2009).Now while filing returns in INDIA,I calculated:
- India taxable income
- Foreign income - Rent paid = Foreign taxable income
- Total income = India taxable income +Foreign taxable Income
- Tax on total income = X
- Tax paid on foreign income = Y(tax relief)
- Tax payable = X-Y
It seems that with demand notice,they have not considered Tax relief for tax paid in foreign.
I have applied for rectification and consideration which is still open at AO.
Questions -
- Is the tax relief correctly considered?
- Does DTAA has to do with this?
- What if there was no DTAA with the country?Will I still be getting tax relief for the tax paid?and how the calculations would differ?
- Will there be interest applicable,even if I filed the response 3 times so far since I received the notice?How much would be interest accumulated so far?
- The demand letter does not mention anything about interest details.
Thanks a lot to help
CAclubindia
