Interest under sec 234b and c

When was original return filed?

Whether form 10E was submitted online?

Sir,

The original return along with form 10e was filed on 27/07/2016. 

STATUS OF ORIGINAL RETURN ......... IF ANY?

'DEFECTIVE' AS PER IT EFILING PORTAL.

It seems form 10E is not considered during revised return assessment.

You will have to contact your Jurisdictional ITO. As per his advise, if he accepts your rectification request u/s. 154; you may get refund. Othewise system will not accept it again.

It is evident from the intimation u/s 143/1 served by the dept. demanding for payment of tax, that relief under sec 89( as per form 10e) is deducted from the gross tax liability and interest is added under sec 234b and c.  Please go through the attached intimation and guide.  The password to open the attached pdf file is aclpn2136p14071967.

Yes, Mr. Rao....... as per attached file it is clear that the deduction u/s. 89(1) is considered.......

Now check with form 26AS........... when the TDS was deposited to the treasury.

In case there is default in payment or delay, you will not be responsible to pay the interest and as such the demand raised would not be correct.... So, here the rectification request would help.

But if the TDS deduction is in time, then the interest charged is for the tax liabilities of earlier years' arrears, and as such you are liable to pay the same.

Sir,  checked the form 26AS.  TDS deduction and remittance into Govt. account were on time and matches.  The efiled returns for earlier years were processed and refunds also received.  The efiled return for ay 2017-18(fy 2016-17) was also processed and refund received.  Only for this problem year ay 2016-17( fy 2015-16), tax demand shows, for which I submitted my responses two times disagreeing with the demand.  Dept. is not responding to the disagree responses filed.  Please suggest a way out.

Department has accurately calculated the demand of interest over the arrears of Rs. 33,392/-... which exceeded 10K for applicability of section 234B & 234C, for previous years.

Though the refund of earlier years were received......... but when an assessee offers tax to be paid as per earlier year slab rate, department has right to charge interest over that amount which it received in current year.

So, your disagreeging to demand is not genuine. You will have to pay it with interest.

Sir,  sec 234b and c deal with leavy of interest on default or shortfall in payment of advance tax.  the assessee here is a salaried employee whose tds is taken care of by the employer.  Rs.33,392/- is not arrears, but relief under sec 89 as per form 10e. please guide taking these two aspects also.

Originally posted by : m sreenivasa rao
	Sir,  sec 234b and c deal with leavy of interest on default or shortfall in payment of advance tax.  the assessee here is a salaried employee whose tds is taken care of by the employer.  Rs.33,392/- is not arrears, but relief under sec 89 as per form 10e. please guide taking these two aspects also.

YES..........  Rs.33,392/- is not arrears, but relief under sec 89 as per form 10e.

But, it is the tax relief for arrears (salary due) received in this year, and its tax liability arose in the year of its taxability, which as per form 10E has been shifted in previous years !!!

So, the tax liability of earlier year when paid in this year......... interest will be charged or not?

Actually its very fine point........ difficult to understand........ and without digitallization even department missed till this year........... but now many such things are activated......

Thank you very much sir.

My Pleasure

But the employer here, enjoyed the amount for all these years and now he's paying the same to the employee. then how is justified charge interest from employee(who is enjoying the amount now). Since the employer is enjoying the money paid in arrears it is to be charged to the employer itself for delay in payment. Not the employee. Isn't it? Then how come this interest is logically right?