banner_ad

Interest u/s 220(2) - how to pay?

Others 21982 views 5 replies

Dear All,

There was outstanding demand of Rs. 2500/- for AY 2012-13 shown on income tax site under dashboard, which was paid by the assessee. However now it shows new demand u/s 220(2) of Rs. 425/- uploaded by CPC.

I wish to know how to pay this demand, which challan, whether under interest or penalty, under which minor head - 400?

Kindly guide.

Regards,

Suraj

Replies (5)

Its simple interest @ 1% p.m and has to be paid via challan 280 under 400 [Regular Assessment]

 

 

 

S.220(2) If the amount specified in any notice of demand under section 156 is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid 

Thank You Mr Z ╭∩╮(︶-︶)╭∩╮

But at payment gateway of the bank, where to show interest or penalty? Its penal interest right....?

Regards,

Suraj

No, its an interest & its compensatory interest (not penal) . For penalty they would have sent You a show cause notice as to why you should not be treated as Assesse in default (there is penalty also for being assesse in default) this one is interest , show it under interest only

Ohk. Thank alot, Mr Z ╭∩╮(︶-︶)╭∩╮
 

I received a CPC demand for AY 2004-05 under 220(2) and I paid it in Cash using INS Form 280, Under 400 and showing Interest.

After how many days I should see that demand has been nullified in IT/CPC records.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details