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

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.

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