Advance tax exemption to senior citizens applicable from FY13

by SC Vasudeva

Q. I became a senior citizen in December 2011. I e-filed my income tax return for the financial year 2011-12 (AY 2012-13) in July 2012. The State Bank of Patiala gave me the TDS details on my FDs by the end of April 2012. So before e-filing my return, I deposited my tax liability of Rs 69,827 on 23.7.2012 assuming that a senior citizen is not required to pay advance tax under Section 207 (Tribune dated 27.7.2013).

The Income Tax Department has issued me a Demand Notice dated 07.6.2013 showing penal interest of Rs 7,464 (Rs 4,596 under Section 234B and Rs 2,868 under Section 234C of the Income Tax Act.

Kindly advise whether I was right in my assumption as a senior citizen in respect of advance tax or not. If yes, then what to do with this Demand Notice and how to settle this issue. My income does not include any income from profits and gains from business and profession.

— Dr DC Katoch

A. The provisions relating to non-applicability of payment of advance tax to senior citizens who do not have any income chargeable under head “profits and gains from business and profession” have been introduced by the Finance Act 2012 and are applicable for the advance tax payable during the financial year 2012-13. The exemption from payment of advance tax was not available for financial year 2011-12. The department has, therefore, correctly charged interest under Section 234B & 234C of the Income Tax Act, 1961 (The Act). You should therefore make the payment of Rs 7,464 to settle the dues in respect of the assessment year 2012-13.

Q. I have filed online return to CPC, Bangalore, for AY 2012-13 with Rs 10,000 as advance tax paid and TDS of Rs 2,843, but in computation, the CPC is not giving credit for it and raised a demand of Rs 12,843 plus interest of Rs 1,904 to be paid. Then I filed a rectification application but again they rejected it. The rectification application was filed three times and every time they rejected it and raised the demand. Now my query is:

a) Why the CPC is not giving credit when the deposits are clearly seen on their site in form 26 AS.

b) How should I detect the mistake done at our end while filing return or filing rectification?

c) Can the case can be settled at the local IT office?

d) What should I do to clear this mismatch

— Manjit Singh

A. In case these amounts are reflected in Form 26AS there is no reason for not allowing the due credit in respect of these amounts. You should download a copy of Form 26AS and attach the same with the rectification application and approach the Assessing Officer.

a) It is a possibility that you have not approached your Assessing Officer for rectification.

b) You have to approach your Assessing Officer for such rectification as application for rectification has to be filed with him.

c) If the amount is reflected in Form 26AS there is no question of mismatch.

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