CA. M. Lakshmanan
In the Income Tax Website e filing is enabled for ITR – 1, ITR – 2, & ITR – 4S only and for all other categories it is yet to be done.If an assessee has failed to pay 90% of Income Tax payable as Advance Tax within the due dates and if he prefers to file the return now by paying the tax due as Self Assessment Tax with interest under section 234 B & C he is not allowed to file the same since the respective returns of income are not yet enabled in the ‘Income Tax site’.
Further If the assessee pays the tax now i.e. in the month of May and files the rerun when the same is enabled in the site, say in the month of June or July or later 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 so that the assessees who are ready with particulars can pay tax now calculating interest till the month of payment and file the returns when they are enabled in the site and the returns are processed at the CPC without charging interest under section 234B for the period form the month of payment till the month of e-filing the return.
Extract of Section 234B is as follows :-
(A) Where in any financial year, an assessee who is liable to pay advance tax u/s. 208 has failed to pay such tax or the advance tax paid by such assessee is less than 90% of the assessed tax, the assessee shall be liable to pay simple interest @ 1% for every month or part of a month.
(B) The period for which interest is payable would be the period from the first day of April next following such financial year to the date of determination of total income u/s. 143(1). However, if regular assessment u/s. 143(3) is completed, then interest is chargeble up to the date of regular assessment.
(C) The amount on which interest shall be calculated shall be the amount equal to the assessed tax or on the amount by which the advance tax paid falls short of the assessed tax.