Today I was shocked when I received the tax computation from my CA with interest for non payment of SA amount before 31July’20. 21 December 2017 at 10:52PM edited 30 November -1 at 12:00AM in Cutting Tax. The most common source is interest from banks and resultant TDS. Previously the online payment plan service, called Time to Pay, could only be used to set up instalment arrangements for tax bills up to £10,000. Non-Corporate Taxpayer: 1% interest rate per month for a period of 3 months is computed for advance tax less than 30% of the amount on or before September 15. In view of the above reasoning, the taxpayers hope for suitable amendment to the notification as this poses heavy burden on them. Self-assessment tax returns must be submitted each year by self-employed people, but also those with many other types of income. Carl Lamb, managing director of Almary Green. The current pandemic and impending global recession too calls for removal/reduction of burden from high rate of 1% u/s 234A. 1 lakhs and are normally paying full tax liability through SA tax in the absence of any TDS/Advance Tax vis a vis HNIs, Large corporates, etc.. having total tax liability in crores and resulting SA liability not exceeding Rs. It’s not quite like getting stuff for free, but it’s the next best thing. Therefore, no interest will be laviable. In this case, the whole of the self-assessment tax shall be payable by the due dates specified in the Income-tax Act, 1961 (IT Act) and delayed payment would attract interest under … The second payment on account for the 2019/20 tax year is due by 31 July 2020. Lockdown, and other factors Bnaks could not give Form-16 before August’20. The said notification has, inter alia; extended the deadline for filing return of income for F.Y. If they are considerate, they should refund the interest and penalty charged so. It is atrocious for the govt to impose penalty under Sec234A when the last date for filing income tax returns has been extended. I know the actual compensation in not reported but where on the SA form do I put the interest paid and the tax taken off. Senior citizens are only required to pay tax in advance if they are having professional or business income. Therefore, as you conveyed that you have invested your retirement benefits(i.e you were in services) or we can say that it can not be treated as business or professional income. How does CBDT expect senior citizens to pay SA tax before 31July when the banks could give interest certificates only in August and form 16A in Sept. Form 26AS was updated in September. HMRC will simply work out if … Further, several states like (TN,WB, MH) have extended lockdown till 31st July, 2020 because of outburst of COVID 19 pandemic. The nature of interest is simple interest. The only exception to this would be a bank account on which the interest is paid tax-free, such as an ISA. As Lockdown was enforced from 23 03.2020 onwards, I could not remit my IT for the FY 2019-20 (AY 2020-21). in the case of non-audit cases on or before 31 st July and in the case of audit cases on or before 30 th September and if paid beyond the said dates they have to bear interest under section 234A @ 1% per month or part thereof. Under this circumstance, how can CBDT impose an interest for not paying SA tax in time ? interest attracts only for august on amount of tax which is unpaid and for further period the int calculation will be nil even you are filling your ITR late. 2019-20 (A.Y. Hence, you are not required to pay tax in advance due to being senior citizen and also interest u/r sec-234a,b,c. Whether to delay filing my return and piling on the interest or pay it now. Self-assessment tax is a type of tax that is paid by the taxpayer in relation to his or her income from other sources. “Provided further that the extension of the date as referred to in sub-clause (b) of clause (i) of the first proviso shall not apply to Explanation 1 to section 234A of the Income-tax Act, 1961 in cases where the amount of tax on the total income as reduced by the clauses (i) to (vi) of sub-section (1) of the said section exceeds one lakh rupees”. The imposition of the 1% additional interest on deferred amount means the exemption was a sham. 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Before filing your income tax return (ITR) this year, ensure there is no pending tax payable on your part through self-assessment. I normally don't include my ISA interest in my tax return and up to now any tax due on my building society savings has been deducted before I get the interest, although the amounts did need to be included on my tax return. gradually in year 2003 in consonance with the state of economy. I am a senior citizen and I have been filing my tax returns every year before the due date. The details like form 16,16A has not been provided by the govt departments by 31-7-2019 to the tax payers and they are punished with fine for the inefficiency of the govt. Form-16 will be given still later. This means that information you provide to the ATO is initially accepted as being true and correct when you lodge your tax return and other forms on which you disclose your tax liability. Usually, penal interest under section 234A is levied if self-assessment tax is paid after the due date of filing ITR. Self-assessment tax Filling in a tax return: five common mistakes As the self-assessment tax deadline looms, alarm bells ring: leaving it to the last minute can lead to carelessness and errors Further, as the time line to file TDS return is extended upto 31st July 2020 and issuance of TDS certificate thereto by 15th August 2020, most banks/tax deductors have not yet filed their TDS returns and taxpayers is in limbo to ascertain SA Tax. If the self-assessment tax is deposited after the due date, here's how penal interest is calculated. I hope the Govt will look into for waival of Interest amount on IT at this pandemic situation for Pensioner like me. Due to Pandemic. They are required to pay full amount of their liability by way of SA Tax after gathering relevant information and making tax computation. This is a nice way of showing your appreciation for seniors to obey government instructions and stay at home and then make honest citizens pay penalty under Section 234A. Due to extension of filing returns upto 31st Dec and also as I did not get TDS statement from my employer within 31st July I went to my auditor yesterday to assess my tax and file the returns and to my astonishment an interest amount under section 234a is levied on the tax due from me. I also have income from a rental property on top of my personal pension which I get every month so do a tax return each year. As per he CBDT’s Press Release dated 24.06.2020 if the Self Assessment Tax payable is more than Rs. This newspaper has been a central part of community life for many years. Landlord mortgage interest tax relief from tax year 2017-2018 . I would earnestly request the honorable Prime Minister and Finance Minister to waive the interest under section 234A for senior citizens and to make an announcement at the earliest on all TV channels and newspapers. I have a number of ISAs amounting to about £80,000 and about £30,000 of savings in a building society account. Challan No./ITNS 280:- Payment of Advance tax, Self-Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company and Tax on Distributed income to unit holders. Extension of the tax filing date and applicability of 234A are interrelated and the Finance Ministry could have easily anticipated this impact. Even I was shocked to get an Interest liability of more than 20000 from my CA. 1 Lakh the whole of the tax is to be paid by the specified dates i.e. I have received appreciation emails from IT department . Payments on account of Income Tax due under Self Assessment are due on 31 January, during the tax year, and 31 July following the end of the tax year. The press release issued thereafter clarified above that there will be no extension of date for the payment of self-assessment tax for the taxpayers having self-assessment tax liability exceeding Rs. There may arise a situation where middle class/small businessman/senior citizens are having their total tax liability marginally above Rs. Contact Alistair Bambridge, alistair@bambridgeaccountants.com, 020 3797 1432. For this, you need to … Interest u/s 234A is most unjustified, more specially for the Senior citizens. To decide your tax code, HMRC will estimate how much interest you’ll get in the current year by looking at how much you got the previous year. Any update or representation given so far with the finance ministry on the same.. Copyright © TaxGuru. Finishing your tax return TRG 13 Signing your form and sending it back TRG 14 A rough guide to your tax bill TRG 16 Tax return deadlines and penalties If you: • want to fill in a paper tax return, you must send it to us by 31 October 2020 (or 3 months after the date on your notice to complete a tax … Find out who has to complete a tax return for the 2019-20 tax year and how self-assessment works. If your home office accounts for 20% of the space in your property, then you are allowed to claim up to 20% of the cost of your council tax on your annual Self Assessment tax bill. Australia's income tax system is based on self-assessment. HMRC are advised of interest payments received & if you have missed inteerst off of your return, even if there is no tax loss, you may end up with an enquiry as HMRC will want to know what else was not declared. Thanks for any help. Self-assessment is the process of making your own assessment of your tax liability to Revenue. 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