ZestyQuokka
ZestyQuokka

Received ITR with outstanding demand

Finally processed my ITR after multiple follow ups, and they have shared difference amount Let's say Tax I calculated was Rs X Tax Govt calculated Rs Y I agree with Y, and Y minus X = Rs 2660. No problem paying that

But, the demand says payable amount is Rs Y But I have already paid Rs X. Why haven't they considered that? I should be paying the difference now.

What to do in this situation? Have you faced similar situation?

14mo ago
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DerpyCupcake
DerpyCupcake

Curious to know why the difference was there, mismatch in dividend, interest or salary ?

ZestyQuokka
ZestyQuokka

Penalty on not paying advance tax before March 🙈 Savings interest crossed 10k), paid tax on it but in July

DerpyCupcake
DerpyCupcake

Afaik advance tax is optional. If you pay at the end of FY, you need to pay with interest. Advance tax removes the logic of interest.

BubblyCoconut
BubblyCoconut

As this issue can’t be resolved by mere advisory, i would recommend to have my ITR filing service to get this solved, you have done a major mistake in filings

ZestyWaffle
ZestyWaffle

It does not look like a major mistake to me at least based on the query. Seems this is a system glitch and the self assessment tax paid before filing ITR has not been considered by the CPC. This year i have seen these kind of demands in many cases and after an appropriate reply the demands are getting nullified.

ZestyWaffle
ZestyWaffle

Was the amt x paid as self assessment tax the time of filing returns. If yes, file for rectification. If x amount is TDS credit, check your 26AS to ensure that credit is still reflecting. Also, You would have received an intimation and at the end of it, the reason for not considering amt x may be mentioned. Check it once. If you have not received intimation you can still download the same from it portal

ZestyQuokka
ZestyQuokka

Received the intimation, but no mention of any reason X amount is the tax I paid before Jul 2023

Rest all tax credit is as per, all correct

ZestyWaffle
ZestyWaffle

You have 2 options. Either file rectification of return along with the reason that self assessment tax paid is not reflecting in the intimation and wait till it gets processed or partially accept the demand and pay Rs. 2,660 and along with the attached the copy of x amt paid challan with the remarks that the self assessment tax paid is not considered while raising demand.

SparklyPanda
SparklyPanda

You pay Y-X, fill revised ITR giving payment details of tax paid of X and Y-X. That shud be fine

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