Income Tax Notice 143(1)

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cavin

Engineer

28 Points Joined April 2010

I have recently recieved a 143(1) notice from Income tax requesting me to make payments ( under secion 234B and 234C). I guess these are related to the recent goofup that happened with the server error in the Income Tax department.

During the year 2007-2008 I had made a change in my company. I recieved salary for the month of April-may from the first company and the salary for the month of June-March from the second company. I had paid advance tax just before filing my returns. Could this be the reason for this?

Do i need to reply to IT u/s 154. If yes, can some one guide as to what should be the content of the letter, whom it should be addressed to and where it has to be sent. Would highly appreciate if anyone has a sample letter to this extent.

Replies (2)

Aditya Maheshwari

CA in Practice

35867 Points Joined June 2009

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.

CP KULKARNI

GOVT SERVICE

16 Points Joined August 2007

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