This Amount of Refund will not be paid by Income Tax Department

0
77
This Amount of Refund will not be paid by Income Tax Department
any tax dues less than Rs 100 would be carried forward for the purpose of set-off against the refunds of any future years

Tax Refund is generally issued, from 30 days to 90 days from the date of e-verification of your Income Tax Return.

However, did you receive a notice or intimation from the IT department for a tax demand or tax refund amount of less than Rs. 100, after processing your income tax return?

If you have, then you are neither liable to pay such tax demand nor will you receive such amount in your prevalidated bank account.

Reason being;

  • A press was vided by the government on January 2012, where it clarified that demand of less than Rs 100 would not be enforced but is liable for adjustment against future refunds.
  • Thus, any tax dues less than Rs 100 would be carried forward for the purpose of set-off against the refunds of any future years, says Dr. Suresh Surana, founder, RSM India, a tax consultancy firm.
  • Notices sent by the income tax department u/s Sec 143 (1) to taxpayers after processing their returns also indicate the above in cases where there is a refund or tax demand of less than Rs 100.
  • Also, if the tax demand amount is below Rs 100 then also deposit of the same is not demanded by the income tax department.

Got a Query? Get in touch with our Tax Expert at All India ITR

LEAVE A REPLY

Please enter your comment!
Please enter your name here