After a large number of taxpayers received interest demand notices on updated returns, the Gujarat Chamber of Commerce and Industry (GCCI) has sought an amendment in the Income Tax Act to put an end to the calculation dispute.
Several taxpayers have received demand notices from the Income Tax Department regarding tax liabilities on interest under Section 234B, specifically in relation to updated returns and the tax paid as per Section 140B. GCCI has demanded that the confusion is due to different methods of calculating interest, and there is a need to amend the section.
The Chairman of GCCI’s direct tax committee, said, “Taxpayers are facing issues with demand notices issued by the I-T department after processing updated ITRs filed under Section 139(8A). As per Section 140(1), tax, interest, and fees must be paid before filing such returns, and under normal circumstances, no demand notices should be issued. However, recent notices for interest under Section 234B have been sent to several taxpayers, despite the taxes being settled prior to filing, causing confusion and unnecessary burden.”
Source #TOI
