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Interest u/s 234B/C and Relief u/s 89

17 November 2017

Recently I got intimation of 143(1) and It shows Interest payable under section 234B and 234C, while net. tax liability after rebate of 87A and Relief u/s 89.

will it be correct to pay Interest.??

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13 Replies

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 17 November 2017

1). NTI - XXXX
2*) . Tax on income - XXXX
3). Less 87A (2*) - XXXX
4) Total Tax payable with cess
5) after less u/s 89
6) Calculate interest u/s. 234

1 Like

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Mitul Thakkar (9 Points)
Replied 18 November 2017

NTI : 4,02,110
Tax: 15,211
Less 87 : 5000
payable: 10,517
less u/s 89: 10,517
Liability : Nil

in intimation they charged interest of 1160 (530+630)

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 18 November 2017

Are you paid advance tax...?

Mitul Thakkar (9 Points)
Replied 18 November 2017

not paid

Mitul Thakkar (9 Points)
Replied 18 November 2017

as ai thought there is no liability to pay..

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neeraj gupta (1138 Points)
Replied 18 November 2017

Did you file the Form 10E?

neeraj gupta (1138 Points)
Replied 18 November 2017

No advance tax required since tax there is no tax liability

2 Like

Mitul Thakkar (9 Points)
Replied 18 November 2017

Yes.! Form 10E has been filed before filing return.

Now what action can be taken??

should I file rectification u/s 154??

Murli Soni (.) (31 Points)
Replied 24 September 2018

What happened finally for interest demand??

Tajbar Singh Rawat (4 Points)
Replied 27 October 2018

ALMOST 100 CASE HERE AS ABOVE DISCUSSED

CAN ANYONE CHECK THIS CASE

THEY CHARGED INTEREST U/S 234B AND C IN REFUND CASE

USER ID - AJKPV9100H
PASSWORD - 1980 @ anju
d.o.b- 07-12-1974

Attached File : 2206290 20181027165740 18128126800 ajkxxxxx0h a1 3 .pdf downloaded: 156 times

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neeraj gupta (1138 Points)
Replied 27 October 2018

Dear Mr Tajbar,

1. Yes this seems improper on IT Dept part to charge interest on a refund case. Most probably an error in their calculator. I think they are considering the assessed income before accounting for the Relief under section 89. A written response should take care of this matter.

2. Please change the password you have shared asap. It is never a good idea to share username, password on public sites. They can be very easily misused.

Hope that helps

1 Like

Tajbar Singh Rawat (4 Points)
Replied 12 November 2018

SIR

I AM SUBMIT GREIVIENCE .RESOLUTION FROM DEPT. IS THIS

Attached File : 2206290 20181112135325 new microsoft office excel worksheet.xlsx downloaded: 241 times

Amal Samanta (2 Points)
Replied 20 January 2019

Resolution given by IT Department is not right as the question of liability of advance tax arises only after allowing of Rebate,Relief and Prepaid tax as per provision of section 234B of IT Act, 1961.