Happy Diwali everyone!
I have run into a conundrum, and I should be asking a CA, which I have done, but no one is responsive because everyone's celebrating Diwali. I wonder if anybody from our esteemed community would like to take a shot?
In AY 2019-20, my employer provided wrong details in Form 16, and I filed my returns for that year without thoroughly checking. Within 20 days, the IT department sent me a notice for a defective return. Presumably this happened to many other of the 3000+ employees of the firm, and my employer had also sent the corrected form 16. So far so good. Now, I filed a revised return, and my tax tax liability was Rs. 80,570, which I didn't have.
Now, I didn't realize that you couldn't (still can't?) file a return without paying the self assessment tax. So I went ahead and filed the return anyway. (This was Sept 16, 2019). Then, on September 30, the day I got my salary, I promptly paid Rs. 80,570, for which I have a challan/cin. What I realize now is that I should have immediately filed another revised return, which showed the payment of the self assessment tax, and all would have been well.
At some point, the department marked the return as defective (though no notice or email was sent), with a demand for Rs. 81,300. (I guess the discrepancy of ~800 was interest for the extra month). In Jan 2020, I got a notice along the lines of
On perusal of ITR it is noticed that you have not paid outstanding self assessment tax of Rs. 80,570/- till date. Therefore, you are requested to deposit the outstanding tax within 7 days of receipts of this letter and intimate to this office, failing which appropriate measures shall be initiated for recovery of outstanding demand.
I responsed to the notice saying that had already paid it, and provided the CIN details, etc. There was also a demand notice, to which I responded similarly. I then assumed that everything was settled. In subsequent years, things were normal, and I even got refunds when excess tax was paid.
Now this year, a refund of around 20,000 was due, but they've kept it on hold, proposing that it be adjusted against the outstanding demand under section 245.
Now my question is this - what do I do now?
One option I have is to accept the demand as correct, and provide the CIN details. But there's a discrepancy of Rs. 730. What will happen if I accept the demand as correct, and enter CIN details? I am not worried about the interest or even penalty on Rs. 730, but I want to settle the matter. But is it the correct thing to do? If not, what is the correct thing?
(I have already disagreed with the demand in the past), but I can re-submit the response. Typically what happens if you select "Yes, and already paid and challan has cin", and you've paid any amount less than the demand?
As I said before, if I get the refund less interest/penalty, if any, on 730, I am fine with that.
In case the correct action is something else, please advise.
Thanks and warm regards.
I have run into a conundrum, and I should be asking a CA, which I have done, but no one is responsive because everyone's celebrating Diwali. I wonder if anybody from our esteemed community would like to take a shot?
In AY 2019-20, my employer provided wrong details in Form 16, and I filed my returns for that year without thoroughly checking. Within 20 days, the IT department sent me a notice for a defective return. Presumably this happened to many other of the 3000+ employees of the firm, and my employer had also sent the corrected form 16. So far so good. Now, I filed a revised return, and my tax tax liability was Rs. 80,570, which I didn't have.
Now, I didn't realize that you couldn't (still can't?) file a return without paying the self assessment tax. So I went ahead and filed the return anyway. (This was Sept 16, 2019). Then, on September 30, the day I got my salary, I promptly paid Rs. 80,570, for which I have a challan/cin. What I realize now is that I should have immediately filed another revised return, which showed the payment of the self assessment tax, and all would have been well.
At some point, the department marked the return as defective (though no notice or email was sent), with a demand for Rs. 81,300. (I guess the discrepancy of ~800 was interest for the extra month). In Jan 2020, I got a notice along the lines of
On perusal of ITR it is noticed that you have not paid outstanding self assessment tax of Rs. 80,570/- till date. Therefore, you are requested to deposit the outstanding tax within 7 days of receipts of this letter and intimate to this office, failing which appropriate measures shall be initiated for recovery of outstanding demand.
I responsed to the notice saying that had already paid it, and provided the CIN details, etc. There was also a demand notice, to which I responded similarly. I then assumed that everything was settled. In subsequent years, things were normal, and I even got refunds when excess tax was paid.
Now this year, a refund of around 20,000 was due, but they've kept it on hold, proposing that it be adjusted against the outstanding demand under section 245.
Now my question is this - what do I do now?
One option I have is to accept the demand as correct, and provide the CIN details. But there's a discrepancy of Rs. 730. What will happen if I accept the demand as correct, and enter CIN details? I am not worried about the interest or even penalty on Rs. 730, but I want to settle the matter. But is it the correct thing to do? If not, what is the correct thing?
(I have already disagreed with the demand in the past), but I can re-submit the response. Typically what happens if you select "Yes, and already paid and challan has cin", and you've paid any amount less than the demand?
As I said before, if I get the refund less interest/penalty, if any, on 730, I am fine with that.
In case the correct action is something else, please advise.
Thanks and warm regards.
