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Tax u/s 140B

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Suresh Pai S

Tax Consultant

1029 Points Posted on 22 November 2022

AY 2020-21.
As per 140B(2)(b) the tax payable as per return has to be arrived after as increased by the amount of refund, if any, issued in respect of such earlier return.

However as per department utility, the refund claimed in the original return whether issued or not is added to tax as per 140B(2)(b) and also 50% additional tax is also asked. This is against the intentions of the Act. Do you agree?

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Quick Summary

This discussion concerns Section 140B of the tax act, specifically regarding the calculation of tax payable for AY 2020-21. The user points out a discrepancy where the department's utility adds claimed refunds (whether issued or not) to the tax payable, along with a 50% additional tax. This is perceived as contrary to the Act's intent, especially when read in conjunction with Section 139(8A) concerning updated returns.