Income Tax Notice 143(1)

Advance tax is tax paid on the estimated income for the year during the financial year itself. If you have not your advance tax in time then you will be liable for interest u/s 234B & 234C if amount payable in more than Rs. 5,000/-.

So if you have paid some tax just before filing of income tax return then it is self assessment tax and not advance tax and hence you will liable for interest u/s 234B & 234C.

Received a notice u/s 143(1) for AY 2007-08 in may/2008 for payment of Rs. 39,x x x /- approx. i had filed e-return in 2007-08. Apparantly AO has not taken into a/c, Sec 80C while computing tax, and thats why he raised a demand for Rs.  30,000 + cess + interest. 

Immediately I had replied through Registered post on a plain paper for rectification with all photostat copies of savings like PPF, LIC etc well above Rs. 1 lacs alongwith copy of Ack form which clearly mentions deduction u/s 80C duly stamped by IT authority during filing of return.

As on date there is no reply from AO or refund of Rs. 579/-

I got refund for sub-sequent year AY2008-09 BUT NO CLUE ABOUT THIS PARTICULAR ONE,

WHAT SHOULD I DO NOW??

CP KULKARNI, DELHI