CA. M. Lakshmanan
At the end of May the Income Tax Return forms are released for the Assessment Year 2015-16 and same been held back by finance minister due to complicated nature of Return Forms. It was further informed by the CBDT that department will release new simplified ITR forms with return filing utility by 3rd week of June 2015.
If an assessee has failed to pay 90% of Income Tax payable as Advance Tax within the due dates and even if he was ready, it would not have been possible for him to file the return till May since the relevant form are not yet ready. If the assessee pays the balance tax as ‘Self- assessment Tax’ now i.e. in the month of June the CPC will charge interest under section 234B till the month of filing the return and will raise demand. Since it is the fault of the department the assessee should not be peanlised. Hence suitable instruction/notification may be issued immediately to waive the interest for the months of April & May for all assesses who have to pay interest u.s 234B. Since the due date of filing return has been extended from 31st July to 31st August, interest 234A need not be paid for the returns being filed in till 31.08.2015 and for those who files on or after 01.09.2015 interest need not be paid for the month of August. The various softwares used for filing returns have to be modified accordingly.