Intimation for difference in interest u/s 234c

I'm a CA, and use Winman software to file my client's returns. The clients for whom Interest u/s 234C has received intimation for variances in 234c interest calculation.

I tried calling the CPC helpline number asking for the department's calculation of the 234C, and surprisingly nobody has the basis for such calculations and relying completely on CPC's automatic calculations.

I went to the Assessing Officer's office personally to discuss this issue. And they too, do not have any calculation as the same was done automatically by CPC.

I reached out to Winman software too, and they also do not have any basis for department's calculation.

For a few clients, we filed the returns through income tax notified utilities. and in these cases too, the clients are receiving intimation for differences.

Is there any way to receive the basis/ calculation for 234C interest made by the department, without applying for an appeal?
Replies (4)
Quick Summary
Tax professionals are encountering issues with intimations for differences in interest calculations under Section 234C. Despite inquiries with the CPC helpline, Assessing Officers, and software providers, the basis for the department's calculations remains unclear. It appears the CPC might be calculating interest without deducting the Rs. 1 Lakh exemption for Long Term Capital Gains (LTCG) under Section 112A, even though the filing utilities account for this deduction. While rectification has been attempted, it hasn't resolved the discrepancies, suggesting potential issues with the periodic breakdown of income in the ITR.

Just apply for rectification showing incorrect interest calculation.

Yes, I faced the same issue, Basically the CPC is calculating interest without deduction of  Rs. 1 Lakh for LTCG U/s 112A however the utility provided by them is considering that deduction and then calculating.

I even tried 'rectification' option but they processed is in same manner and confirmed the interest.

Yet no solution

 

 

 

 



 

There is bifurcation to be provided in ITR for period of income from LTCG check whether the capital gain income shown in correct period.

Thanks Rashmi - in our case periodic breakup of dividends and capital gains was wrongly taken maybe due to the program.

One query  - in case the instalment of advance tax say in December is delayed by a few days will the interest for shortfall be calculated for a period of three months or for one month only?

 

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