Relief u/s 89 & interest u/s234b & 234 c

Sowmya.S.Balan (Paid Assistant) (749 Points)

24 June 2018  

ONE OF OUR CLIENT HAD RECEIVED ARREARS OF SALARY FOR THE AY 2017-18 AND RELIEF U/S 89 HAD CLAIMED AND BALANCE TAX DEDUCTED BY HIS EMPLOYER. WE HAD FILED RETURN OF INCOME BEFORE DUE DATE ITSELF AND UPLOADED FORM 10 E ONLINE. NOW INTIMATION FROM IT DEPARTMENT RECEIVED WHICH DEMANDS INTEREST U/S 234B & 234C ON THE RELIEF AMOUNT CLAIMED. ON VERIFICATION OF THE SECTION , I UNDERSTAND THAT FOR CALCULATING INTEREST U/S 234B & 234 C RELIEF U/S 89 SHALL NOT BE DEDUTIBLE FROM THE TOTAL TAX. BUT I THINK IT HAS NO LOGIC IN IT. IS DEPARTMENT'S VIEW IS CORRECT ? I NEED CLARIFICATION ON THIS. CAN YOU PLEASE HELP ME .