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Samkit

Samkit Maniar  |44 Answers  |Ask -

Tax Expert - Answered on Feb 03, 2024

CA Samkit Maniar has eight years of experience in income tax, mergers and acquisitions and estate planning.
He has graduated from Mumbai’s N M College of Commerce and Economics and has completed his CA from The Institute of Chartered Accountants of India."... more
Saurabh Question by Saurabh on Dec 23, 2023Hindi
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Opted for 115bac form paid tax accordingly but still got demand notice under section 1431a

Ans: Before answering the question, just wanted to understand whether you had informed the employer that you will opt for new tax regime? If not, then this may be the issue because your employer must have factored all the deductions and deducted your TDS accordingly.

Please note that this is one scenario wherein the possible issue may have arisen. Kindly check with your CA as well and take appropriate actions. Thanks
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Mihir

Mihir Tanna  |825 Answers  |Ask -

Tax Expert - Answered on Sep 29, 2022

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Dear Mr Tanna, Before soliciting your sincere opinion I must first congratulate and compliment you for the benevolent job being done to alleviate the problems being faced by the solo taxpayers from the pounce of the IT Office. I would request you to go through my problem which is very much exhaustive and moreover disheartening for the busy people like you. I am a retd employee from LIC in the FY 2020/21. In FY 2021/22 I had received arrears of salary along with commutation of pension and leave encashment. The employer while finalizing the IT for 2021/22 had deducted IT giving the exemption for comm pension, 80CC and 80D without the benefit under sec 89. While filing IT I could see the effect of AIS. Without any further deduction except under 80 TTB, I tried to confirm the Total Taxable Income as per 26AS/AIS. The self-assessed tax was to be paid on three dates because of the ATM limit etc. The last payment which was on 28th July, could not be successful and was debited on 29th as a result I could not add the CIN No etc., on the Add box of tax payment. Since the total amount of tax was paid before the last date i.e 31st I did submit a short paid ITR presuming it would be taken care of. On 1st Aug I received a message under sec 143 with a demand due for 4660/. The e-file status was showing the ITR is under process with O/S demand Nil (four Green tick was displayed). Till Aug 30th when I found the ITR is not accepted despite the grievances as cited above, again I paid the balance amount going thru the demand due option, there also I faced the same problem from bank. The amount could be debited on 31St Aug. I did pay the amount thinking the ITR and tax deposit are different Module. Moreover after filing ITR I made a query with the ITO regarding exemption of Transfer grant which should have been allowed at source. They denied it under pretext that no further exemption after filling. In order to see the last payment due appear under SAT head I had submitted a grievance which was not seen till I spoke to the help desk. One reply came with so many tags to file revised IT under section 131 (5). While I visited for re-file, I could see the interest amount along with an increased taxable income thus returned back. Now my questions are: 1. How the taxable income would vary when a letter under 143 is issued with a demand? 2. If I am to re-submit the ITR under Sec 131 (5) can I restrict the taxable income to the earlier one? 3. Can they alter the taxable income when Sec 143 is invoked? 4. Finally, should I conform to the query or wait till they make their earlier demand set right. Sir I had filled it by myself without the help of a professional. Your opinion would be mostly an antidote against the IT virus that has made me upset. Eagerly awaiting your reply.
Ans: Thank you so much for your compliment. Looking at your facts, I wish you could have got professional advice on 1st August itself. My views on your queries are as follows:

  1. I understand you are using online feature of filing Income Tax Return at www.incometax.gov.in wherein data is prefilled based on information reported by different persons (like employer for salary, bank for interest income, company for dividend income, TDS deductor for TDS deducted and amount of income credited, etc.). In your case, it might be possible that reportable entity has revised its data for reporting to income tax department and accordingly amount appearing in intimation issued u/s 143(1) differs from amount auto populated while filing income tax return u/s 139(5) of Income Tax Act using online feature.
  1. It is not advisable to restrict auto populated income unless income auto populated at e-filing portal is incorrect. Check AIS for income auto populated at e-filing portal. If income appearing in AIS is incorrect, you can file feedback for AIS and offer actual income to tax while filing return u/s 139(5) of the act which allow tax payer to revise return by rectifying mistakes.
  1. Yes, income tax provides updated figure at portal even if intimation is issued u/s 143(1) of the Act, as revised figures is provided by the payer of income or person authorised as reportable entity.  
  1. I understand you are talking about self-assessment tax paid by you and not auto populated in relevant schedule of ITR. Reason for the same can be wrong selection of year or code while making payment or while uploading challan details by the bank. Please check 26AS for self-assessment tax paid, if the same is not appearing in 26AS of AY 2022-23, you have to discuss said issue with Jurisdictional officer.

..Read more

Mihir

Mihir Tanna  |825 Answers  |Ask -

Tax Expert - Answered on Oct 20, 2022

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Please provide correct advice in the following situation. We filed ROI for AY 2019-20 on 30-10-2019 and paid a tax amount of Rs 1,20,03,465/- under section 115JB. Above return was processed u/s 143 (1) by intimation dated 19-05-2020. The Company has deposited Advance tax of Rs. 40, 00,000/- and ITR -6 for AY 2019-20 was filed under Section 139 on 30-10-2019 to obviate any violation in Tax compliance including the TDS claim of Rs. 87,29,484/-. In the Intimation order the assessing officer had accepted the income and other claims of the Appellant but had demanded Rs 97,85,148/- as balance tax and interest. During the Assessment Year relevant to Previous Year 2018-19, the land under the ownership of the Assessee has been taken over by the Government for Guruvayur Dewaswam (GD). LA compensation of Rs.38565360/- (on 5- 2-2018), Rs.4,00,00,000/- (on 4-2-2019), and Rs.48,28,009/- on19-11-2020 were paid to the Petitioner Company. Deductor, GD did not deposit the TDS to government in relevant years, this resulted in the demand of Rs. 97,85,148/- on Company towards balance tax and interest in the intimation u/s 143 (1) dated 19-05-2020. GD deposited Rs.95,02,088 /- towards TDS and Rs.21, 25,421 /-towards TDS and interest on 30-1-2021 and filed TDS return for the Assessment Year 2021-22. (not AY 2019-20). Deductor is delaying filing revised TDS return in spite of many requests even by Income tax authorities. Can the Income tax department seek to recover Income tax with fine from Company for AY 2019-20, on mere fact that Petitioner could not account for deposit of such tax (TDS) (Rs.87,29,484/-, only because the deductor, after paying the compensation to Petitioner in relevant year, did not deposit TDS to government revenue? Should the assessee suffer for the fault of the deductor? We understand There is a bar under Section 205 and circular of CBDT in this matter.
Ans: If TDS is deducted and there was delay in depositing TDS, said TDS amount cannot be recovered from deductee. There are some judicial pronouncements for the same which provides relief to taxpayer (deductee). But in given case, I understand that it is not case of delay but amount credited in different year.

In such a case, you can request to jurisdictional officer to provide credit of TDS in the year in which income is offered to tax though TDS is appearing in 26AS of subsequent year and it can be subject to litigation.

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Chocko

Chocko Valliappa  |215 Answers  |Ask -

Tech Entrepreneur, Educationist - Answered on May 09, 2024

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Sir i am a civil engineer graduate 2023 i did my graduation in civil engineering from a tire 2 -3 college from mumbai university . I didn’t get any job its not like that i am dum student or else i was not good at studies u definitely found partility that in civil they took all diploma + degree holders with less knowledge also in companies such a worley , godrej , technimont etc mnc companies with salary of 6-7 lpa but sir i was scattered because i lost my dad in covid my mom is working but her salary is just 50k and now after trying out for jobs as fresher i found a job in IIT bombay as project technical assistant which gives me 30k but its in ocean department. Now i want to learn further i am seeing people doing masters from priavte university like nicmar adani symbiosis etc in construction or infrastructure management. I am stuck jn life what to do im trying for government but i know government junior engineers job wont pay me much to buy home for my mom . In such case what will be best please help
Ans: I fully empathize with your situation. Do focus on the positive of having completed BTech in Civil Engineering. Civil Engineering is the foundational engineering discipline and lends itself to use of new tools and technologies through use of of software to build structures using design elements that use newer materials to build infrastructure, homes, industrial townships that further sustainability. Use your current Tech Asstt job to learn about Oceanography as an added skills. Look at acquiring project management skills and explore opportunities with optimism and passion.

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